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A Project Submitted to the Faculty of the

                    Punjab University



             In Partial Fulfillment for the

 Bachelor's Degree of Business Administration

                        2009-10




SUBMITTED TO:                      SUBMITTED BY:
Prof. Renu Sharma                  Mahesh Gupta
( Lect. In Commerce &               B.B.A Final Year
  Management Deptt.)               ROLL.NO.-15107000128




  KAMLA LOHTIA SANATAM DHARAM COLLEGE

                        LUDHIANA



                           vi
ACKNOWLEDGEMENT

     I feel immense pleasure to give the credit of my project work not

only to one individual as this work is an integrated effort of all those

who are concerned with it.


     A teacher or a guide plays a great role to play in a field of research

and discovery. No research can be done without motivation, guidance,

and inspiration. I take this opportunity to put my earnest thanks to

Mrs. Renu Sharma (Lect. in Commerce & Management Deptt.) who

inspired and guided me a lot while making this project.


     I am thankful to Mr. Rajesh Marwaha (HOD) for superb

guidance, valuable inputs and encouraging attitude.


     Above all, thanks to almighty GOD for showing his blessing for

the accomplishment of the project.




                                                       MAHESH GUPTA




                                   vii
TABLE OF CONTENTS
                                                                                                       Page

ACKNOWLEDGEMENT.................................................................................

                                              Chapters:
       1. INTRODUCTION ............................................................................ 1
               Purpose/Objectives .......................................................................2

              Rationale/Significance..................................................................3

              Conceptual Definitions................................................................4-7

              Conceptual Framework ............................................................8-13

              Impulsive Buying ........................................................................ 14

              Characteristics of Impulse Buying Behavior............................... 15

              Normative Evaluations for Impulse Buying ............................... 16

              Factors/Cues influencing Impulse Buying .............................17-18

              Visual Merchandising .................................................................. 19

              Visual Merchandising in Relation to Impulse Buying Behavior.20



      2. REVIEW OF LITERATURE ........................................................22



      3. METHODS AND PROCEDURES ..............................................23
              Research Hypotheses.............................................................23-24

              Operational Definitions of Variables .......................................... 25

              Methodology ..........................................................................26-29

              Limitations ................................................................................... 30
                                                    vii
4. ANALYSIS AND DISCUSSION OF FINDINGS ...................... 36

           Descriptive Findings .................................................................... 37

           Data Reduction and Reliability Test .....................................38-47

           Analysis and Discussion of Hypotheses Findings.................48-50



   5. CONCLUSIONS, LIMITATIONS, AND
   RECOMMENDATIONS .................................................................... 51

           Conclusions ............................................................................52-53

           Implications ................................................................................. 54

           Recommendations for Future Research .................................... 56



APPENDICES..........................................................................................57


   A SAMPLE OF SURVEY....................................................................57-58




   BIBLIOGRAPHY .................................................................................. 59




                                                 vii
v
CHAPTER 1
                            INTRODUCTION

      Today’s fierce competition and the similarity of merchandise force
each segment of the fashion industry to utilize visual merchandising to
improve the desirability of products. Apparel retailers, especially, place more
importance on visual merchandising to differentiate their offerings from
others’. Researchers found that impulse buyers usually do not set out with
the specific purpose of visiting a certain store and purchasing a certain item;
the behavior occurs after experiencing an urge to buy, and such behaviors
are influenced by internal states and environmental/external factors.
Research findings suggest that impulse buying accounts for substantial sales
across a broad range of product categories. Since impulse buying is a
pervasive aspect of consumers’ behaviors and a focal point for strategic
marketing plans, it is worthwhile for retailers to understand factors within
the retail setting that trigger consumers’ impulsive reactions. Retailers can
help customers to find the right products through focused merchandising,
intelligent store design and layout, and other visual merchandising
practices, such as product displays, packaging, and signage.




                                      1
1.1 Purpose/Objectives:

      Young consumer group have gained significant importance from
marketers as they have growing purchasing power; their money attitude also
has been changing with relatively easy access to credit cards. Therefore, the
consumer behavior of an important sector of the young consumer group,
college students, is worth to be researched. Retailers try to find variables
that influence shoppers’ impulse buying urges and decisions and attempt to
control these influencing variables through strategic marketing and
merchandising activity. Based on the literature review, it is reasonable to
expect that visual merchandising, a common external factor that encourages
consumers’ urge to buy, can affect consumers’ impulse buying decisions.
The purpose of this research is to examine the relationship between college
students’ apparel impulse buying behaviors and common external factors
that trigger impulse buying. External factors that the research will exam are
attributes likely to be encountered in many retailing contexts, such as visual
merchandising. The research, therefore, will focus on effects of four types of
visual merchandising on impulse buying behavior. The types of visual
merchandising used as predictors in this study are window display, in-store
form/mannequin display, floor merchandising and promotional signage.




                                     2
1.2 Rationale/significance of the study:

      With increasing competition, retailers strive to ensure that their
stores are appealing to their target markets. As retailers are finding it
increasingly difficult to create a differential advantage on the basis of
merchandise alone, the store itself plays an important role for market
differentiation. The correlation between consumers’ belief about the
physical attractiveness of a store and patronage intentions suggests that the
visual aspect of the store may be significant in relation to the consumers’
choice of a store and buying behavior. Since many retailers use visual
presentation of the store/company’s offering in order to encourage
customers’ buying behaviors, this fact was expected to be found in the
consumer and marketing literature. However, the literature does not include
a coherent approach or provide significant coverage for this subject. If first
impressions and appearance are important indicators of store image, then
store window displays must play an important role in a consumer’s decision
whether or not to enter the store. However, classifications of store image
components in the literature are almost entirely related to the in-store
merchandise placement. Display communications, which frequently happen
to influence consumers’ buying behavior, are not considered.


      Buttle (1988) referred to visual merchandising as a neglected area in
fashion marketing research. This neglect does not signify that this area is
unworthy of academic research, but may indicate that since visual
merchandising concerns perceptions of creativity, an area which is difficult
to test; researchers may have difficulty in analyzing it meaningfully.
Therefore, this study will provide information as to why visual
merchandising should be considered an important component of a strategic
marketing plan in support of sales increase and positive store/company


                                     3
image. This study will also provide insights to retailers about types of visual
merchandising that can influence consumers’ impulse buying behaviors.
The way in which merchandise will eventually be displayed and promoted at
the store level is an important consideration in the buying function as well
as in the strategic marketing/merchandising plan.


1.3 Conceptual Definitions:

   Conceptual definitions were adopted from the literature or created by the
researcher specifically for this study.


          External cues: In-store and façade level display correlated with
          situational environment that influences a customer’s buying
          decision.




                                          4
Floor merchandising: The arrangement of merchandise
according to plan-o-gram/zone-o-gram, in which merchandise is
made available for sale to customers


Form/mannequin display: The presentation of merchandise
using forms or mannequins in order to provoke customers’ interest
and create the desire to buy.




In-store display: A creative way of presenting merchandise with
the purpose of providing consumers with information about new
products, fashion trends, or coordination tips in order to encourage
customers’ urge to buy. For the purpose of this study, the following
types of in-store display were investigated: form/mannequin
display, floor merchandising, and promotional signage.


                            5
Internal cues: Emotional feelings and desires that influence
customers’ buying decisions.


Impulse buying: “Impulse buying is a sudden and immediate
purchase with no pre-shopping intentions either to buy the specific
product category or to fulfill a specific buying task.


Signage: Wording used either alone or in conjunction with in-
store display to convey product or promotional information to
customers with the purpose of informing and creating demand for
the merchandise.




                             6
Visual merchandising: A way of presenting merchandise
effectively to improve the desirability of a product and to influence
a customer’s buying behavior.


Window display: Any kind of visual presentation of merchandise
in the façade level in order to attract attention and ultimately to
enter the store.




                             7
1.4 Conceptual Framework:

      Impulse buying has been defined as a spontaneous, immediate
purchase without pre-shopping intentions either to buy a specific product
category or to fulfill a specific buying task. The impulse buying behavior
occurs after experiencing an urge to buy and tends to be spontaneous
without a lot of reflection. Since impulse buyers are not actively looking for a
certain product and don’t have prior plans or intention to make a purchase,
internal states and environmental/external factors can serve as cues to
trigger their impulse behavior.




                                      8
Model

Following is the model of the consumer buying process (Figure 1) including
five steps:

   1. Need recognition,

   2. Information search,

   3. Alternative evaluation,

   4. Purchase decision, and

   5. Post-purchase evaluation.
The buying process begins with a recognized need. This need recognition
may come from an internal feeling or it may come from external stimuli
generating motivation to purchase. When consumers are motivated by
identifying needs, they start looking for information. Based on the
information, consumers evaluate ways to fulfill the need. After evaluating
options, consumers may make a purchase. Finally, consumers formally or
informally evaluate the outcome of the purchase after buying a product. This
step involves consequences and satisfaction for the purchase; a consumer
who has positive experience may develop loyalty to the store where she/he
purchased. The process is repeated as consumers feel needs for products.




                                    9
Social                Marketing                Situational
                                                             Physical
          Culture                     Price               Surroundings
          Sub-                                               Social
                                   Product
          culture                                         Surroundings
                                                            Time, task,
        Social Class             Placement
                                                             money
                                                            Momentary
          Family                 Promotion
                                                            Conditions
         Reference
         Group




                       Fig 1: A model of consumer buying process



      This consumer buying process is influenced by social, marketing, and situational
Factors. Social influences reflect geographic and sociologic factors. Those can be
culture, subculture, social class, and family that influence person’s behavior by
providing direct and indirect messages and feedback. Consumers are also influenced by
their reference groups, the groups that influence the consumers’ thoughts, feelings, and
actions. Marketing influences on the consumer buying process include the affect of the
marketing mix, known as product, price, placement, and promotion, which influence
the consumer buying process at various stages.




                                              10
Consumers, in general, are influenced by characteristics of the situation,
circumstances surrounding their shopping trip. Major situational influences
include the physical surroundings, social surroundings, time, task,
monetary conditions, and momentary moods. The physical surroundings
that influence buying behavior are observable features that include location
of the store, merchandise display, store interior/exterior design, and noise
level of the store. The social surroundings of a situation are other people,
their characteristics and roles, and the way they interact. The moods and
condition as well as the time, task, and monetary condition of a consumer at
the time of purchase influence their buying decision. Although useful in
explaining planned purchase situations, the model does not lend itself to
explaining the process of impulse buying.
      The buying behavior is classified as planned or unplanned. According
to this classification, planned buying behavior involves a time-consuming;
where as unplanned buying refers to all purchases made without such
advanced planning including impulse buying, which is distinguished by the
relatively    speedy   decision-making    encouraged   by   stimuli.   Impulse
purchases are not the result of a specific search to satisfy a particular
requirement since the satisfaction may come from the act of shopping itself.
Purchases are incidental to this speedy process although they may provide
some kind of enjoyment. Therefore, several pre-purchase steps are entirely
skipped in the impulse buying process. Considering the nature of impulse
buying, which occurs in a short period of time without prior plans, has been
modified for the purpose of this study to describe the impulse buying
process by omitting several steps, such as need recognition, information
search, and alternative evaluation, and reclassifying influencing factors
(Figure 2).




                                     11
External
          Internal                     factors/cues:
      Factors/Cues:                      Window
       Mood/Need/                        Display/
          Desire/                     In-store Form
   Hedonic Pleasure/                  Display/ Floor
         Cognitive/                   Merchandising/
          Affective                    Promotional
        Evaluation                       Signage




         Figure 2: A model of impulse buying process




Unlike the planned buying process, the impulse buying process starts
with product awareness. Impulse buyers begin browsing without having
an intention to purchase a certain item or visiting a certain store. As
consumers browse, they are exposed to the stimuli, which triggers
customers’ urge to buy on impulse. When impulse buyers feel the
desire to buy, they make a purchase decision without searching for
information or evaluating alternatives.




                                 12
At this stage of the impulse buying process, consumers feel an
irresistible urge to buy regardless of their prior intention. Then, consumers
may experience positive or negative consequences by the post-purchase
evaluation after the purchase on impulse. In fact some consumers have
reported dissatisfaction with a product, but maintain satisfaction that the
purchase was made.

      In this process, consumers are influenced by internal states and
external factors that trigger their impulse purchase behavior. Since impulse
buyers do not set out with a specific goal to buy a certain product or visit a
certain store, while browsing and being exposed to the stimuli, impulse buyers
feel the desire for the products by being aware of the products, and this desire
can be created by internal statement/mood or/and external stimuli. The
awareness of the products, which can satisfy the desire, can be achieved by
attractive visual presentation of merchandise that provides information
regarding new products, fashion trends, or coordination tips.




                                      13
1.5 Impulsive Buying:
“Impulse buying has been considered a pervasive and distinctive phenomenon
and has been receiving increasing attention from consumer researchers and
theorists. Despite the negative aspects of the impulse buying behavior from
past research, defining impulsive behavior as an irrational behavior, resulting
from a lack of behavioral control impulse purchases account for substantial
sales across a broad range of product categories. A study found that impulse
purchases represented between27% and 62% of all department store
purchases. Other research findings support this assertion revealing almost
90% of respondents have made grocery purchases on impulse occasionally,
and between 30% and 50% of all purchases can be classified by the buyers
themselves as impulse purchases.


Early studies on impulse buying were more concerned with the definitional
issues distinguishing impulse buying from non-impulse buying and attempted
to classify the types of impulse buying into one of several sub-categories,
rather than to understand impulse buying as a trait of consumer buying
behavior. Therefore, this approach generated a theory that ignores the
behavioral motivations of impulse buying for a large variety of products and,
instead, focuses on a small number of relatively inexpensive products.
However, this type of approach did not provide sufficient explanations as to
why so many consumers appear to act on their buying impulse so frequently.
Therefore, researchers began to re-focus attention on impulse buying behavior
and to investigate the behavioral motivations of impulse buying.

      The pervasiveness of impulse buying, even for relatively expensive
products, led researchers to look at impulse buying as an inherent individual
trait, rather than a response to inexpensive product offerings. Recently,
researchers appear to agree that impulse buying involves a hedonic or

                                      14
affective component. Today’s research suggests that impulse buying behavior
is much more complex than previously conceptualized; that this behavior
stems from the desire to satisfy multiple needs that underlie many types of
buying behavior.




1.6 Characteristics of impulse buying

behavior:

      Impulse buying behavior is identified with descriptors such as a
spontaneous, intense, exciting, urge to buy with the purchaser often ignoring
the consequences. While more recent research in this area discusses impulse
buying as a trait rather than as a classification of a purchase decision,
researchers agree that consumers vary in their impulse-buying tendency.
Without having prior information of a new product or intention to purchase a
certain item, a consumer is exposed to stimuli, suggesting that a need can be
satisfied through the purchase. There are several different types of internal
states and environmental/sensory stimuli that serve as cues for triggering
impulse buying. Internal cues include respondents’ positive and negative
feeling states. Environmental/sensory cues encompass atmospheric cues in
retail settings, marketer-controlled cues, and marketing mix stimuli.




                                      15
1.7 Normative evaluations for impulse buying
behavior:
Past research shows that planned buying behavior results in accurate
decisions, but impulsive behavior results in decision errors, increasing
possibilities of negative consequences. These negative evaluations of impulse
buying behavior possibly stem from psychological studies of impulsiveness
that characterize impulsive behavior as a sign of immaturity resulting in a lack
of behavioral control or as an irrational, risky, and wasteful behavior.


However, some research on impulse buying behavior indicates that impulse
buyers do not consider their impulsive purchases as wrong and report even
favorable evaluations of their behaviors. In the study of “Trait and normative
aspects of impulsive buying behavior”, a relatively small number of
respondents (only 20%) reported feeling bad about their impulse buying, but
a large number of respondents (4 1%) reported that they actually felt good
about their impulse purchases. One explanation for this phenomenon is that
consumers buy products for a variety of non-economic reasons, such as fun,
fantasy, and social or emotional pleasure. Some consumers even see shopping
as retail therapy, as a way of getting over the stresses of a working day or
simply a fun day out supporting the hedonic modification for impulse buying.




                                       16
1.8 Factors/Cues influencing impulse buying:

              Few recent studies investigated the factors that affect impulse
buying.    Researchers     have     suggested        that   internal   states   and
environmental/external factors can serve as cues to trigger consumers’
impulse behavior to purchase. Research shows that situational factors have
practical and theoretical significance in that many decisions are made at the
point-of-purchase as a reflection of “low involvement” decision-making
strategies. The research on situational influence can be described as
examining the relationship among shopper characteristics and the features of
retailing or point-of-purchase situations. Shopper characteristics might include
involvement, attitude, and ethnicity, while the retailing features could include
outlet size, retail format, and store personality.

             Internal factors:


Affect or mood has been identified as a variable that influences impulse
purchasing. According to a survey 85% of respondents indicated a positive
mood would be more constructive to impulse buying than a negative mood.
Respondents stated that, in a positive mood, they had an unconstrained
feeling, the desire to reward themselves, and higher energy levels. Thus, the
impulse buyers exhibited greater feelings of delight, enthusiasm, and joy.


Individual consumers' impulse buying behavior is correlated with their desires
to fulfill hedonic needs, such as fun, novelty and surprise. In addition,
emotional support needs may also be satisfied by the social interaction
inherent in the shopping experience. For instance, research findings indicate
that consumers report feeling uplifted or energized after a shopping


                                        17
experience supporting the recent concept of impulse buying behavior as a trait
motivated by hedonic desire. The hedonic value of shopping reflects potential
entertainment and emotional worth of shopping. It has been suggested that
shopping without specific intent, may be more significant than acquisition of
products and can provide a highly pleasurable shopping experience. Since the
goal of the shopping experience is to provide satisfaction of hedonic needs, the
products purchased during these excursions appear to be chosen without
prior planning and represent an impulse buying event.


            External factors

      Specific situations and retail settings influence both in-store responses
and future store choice decisions because of the changing and adoptive nature
of expectations, preferences, and behavior. For instance, the findings of the
study showed that consumers’ beliefs about the physical attractiveness of a
store had a higher correlation with a choice of a store than did merchandise
quality, general price level, and selection. This supports the notion that
consumers’ choice of a store is influenced by the store environment, of which
visual merchandising plays a vital role. This        observation that people
approach, avoid, and create situations in accordance with their desires.
Customers’ avoid or leave retail settings that are stressful or obstructive. The
expectation/experience of positive feelings generally leads to approach
responses, while avoidance is associated with expectations/experience of
negative outcomes.
Researchers have suggested that various aspects of retailing environments can
influence consumer behavior. The significant role of various retailing
atmospherics, For instance, music and color have been related to consumer
behavior, suggesting visual merchandising within the retail settings may
influence consumer behavior as well.

                                       18
1.9 Visual Merchandising:

      Visual merchandising, or visual presentation, is the means to
communicate a store/company’s fashion value and quality image to
prospective customers. “The purpose of visual merchandising is to educate the
customer, to enhance the store/company’s image, and to encourage multiple
sales by showing apparel together with accessories”. Therefore, each
store/company tries to build and enhance its image and concept through visual
presentations, which appeal to shoppers and ultimately transform them into
customers by building brand loyalty and encouraging customers’ buying
behaviors.




Visual merchandising is defined as “the presentation of a store/brand and its
merchandise to the customer through the teamwork of the store’s advertising,
display, special events, fashion coordination, and merchandising departments

                                     19
in order to sell the goods and services offered by the store/company”. Visual
merchandising ranges from window/exterior displays to interior displays
including form displays and floor/wall merchandising as well as promotion
signage. It also broadly includes advertising and brand/store logo. In this
study, however, only window display and in-store display comprise of
form/mannequin display, floor merchandising and promotional signage were
investigated.




1.10 Visual Merchandising in Relation to
Impulse Buying Behavior:
In-store browsing may be a link between internal and external factors, as an
important component in the impulse buying process as well as a link between
consumers’ impulse buying behavior and retail settings including exterior and
interior display. “In-store browsing is the in-store examination of a retailer’s
merchandise for recreational and informational purposes without an
immediate intent to buy”. Customers who browsed in a store made more
unplanned purchases than non-browsers in a regional mall setting. As a
customer browses longer, she/he will tend to encounter more stimuli, which
would tend to increase the like hood of experiencing impulse urges. This
supports conceptualization of impulse buying as a response to the consumer’s
exposure to in-store stimuli. Shoppers may actually use a form of in-store
planning to finalize their intentions. The store stimuli serves as a type of
information aid for those who go to the store without any predetermination of
what they need or buy, and once they get into the store, they are reminded or
get an idea of what they may need after looking around the store. In other
words, consumer’s impulse buying behavior is a response made by being
confronted with stimuli that provoke a desire that ultimately motivate a
                                      20
consumer to make an unplanned purchase decision upon entering the store.
The more the store stimuli, such as visual merchandising, serves as a shopping
aid, the more likely the possibility of a desire or need arising and finally
creating an impulse purchase.

    The importance of window display in relation to consumers’ buying
behavior has received minimal attention in the literature. However, since a
consumer’s choice of a store is influenced by the physical attractiveness of a
store, and the first impressions of the store image is normally created at the
façade level, it can be suggested that window display may influence, at least to
some degree, consumers’ choice of a store when they do not set out with a
specific purpose of visiting a certain store and purchasing a certain item. The
initial step to getting customers to purchase is getting them in the door.




                                       21
Chapter 2.

              REVIEW OF LITERATURE

Impulse buying has been defined as a spontaneous, immediate purchase

   (Rook & Fisher, 1995) without pre-shopping intentions either to buy
   a specific product category or to fulfill a specific buying task

   (Beatty & Ferrell, 1998). Impulse purchases account for substantial
   sales across a broad range of product categories

   (Bellenger et al, 1978; Cobb & Hoyer, 1986; Han et al, 1991; Kollat &
   Willet, 1967; Rook & Fisher, 1995; Weinberg & Gottwald, 1982).
   Without having prior information of a new product or intention to
   purchase a certain item, a consumer is exposed to stimuli, suggesting
   that a need can be satisfied through the purchase.

The store stimuli serve as a type of information aid for those who go to
the store without any predetermination of what they need or buy. The
more the store stimuli, such as visual merchandising, serves as a
shopping aid, the more likely the possibility of a desire or need arising
and finally creating an impulse purchase




                                 22
CHAPTER 3


                 METHODS AND PROCEDUR
    Chapter three outlines and describes the methodology involved in this
  research. This includes the research hypotheses, operational definitions of
 variables, instrument development, sample recruitment and data collection
  procedure, data analysis methods, and study limitations and assumptions.




3.1 Research Hypotheses:

Research on situational influences can be described by investigating the
relationship among various shopper characteristics and the features of
retailing or point-of-purchase situations. Shopper characteristics might
include involvement, attitude and ethnicity, while retailing features could
encompass store size, retail format and store personality. In this study,
impulse purchase tendency serving as a shopper characteristic and visual
merchandising serving as an external cue are determined to be variables.
Therefore, hypotheses were developed to investigate relationships between
consumers’ tendency to purchase on impulse and four types of visual
merchandising.




                                     23
The Four types of Visual Merchandising are:


1. Window display,


2. In-store form/mannequin display,


3. Floor merchandising and


4. Promotional signage.


     Hypothesis 1 was constructed to find out whether there was a
     significant relationship between college students’ impulse buying
     behavior and window display.


     Hypothesis 2 was designed to find out whether or not there was
     a significant relationship between college students’ impulse
     buying behavior and in-store form/mannequin display.


     Hypothesis 3 was designed to find out whether or not there was
     a significant relationship between college students’ impulse
     buying behavior and floor merchandising.


     Hypothesis 4 was designed to find out whether or not there was
     a significant relationship between college students’ impulse
     buying behavior and in-store promotional signage.




                             24
H1. Consumers who purchase on impulse are influenced by window
displays.


H2. Consumers who purchase on impulse are influenced by in-store
form/mannequin display.

H3. Consumers who purchase on impulse are influenced by floor
merchandising.


H4. Consumers who purchase on impulse are influenced by promotional
signage.




3.2 Operational Definitions of Variables:

      Dependent Variable


      The dependent variable of this study was consumer’s impulse buying
tendency. Five questions measuring consumers’ impulse buying tendency were
included in the survey (Table 1, question numbers 1-5; Appendix. 1). These
questions were developed through references to previous studies on impulse
buying. Responses were measured using a five-point Likert scale, which
ranged from never=1 to frequently=5.




                                       25
Independent Variables


      Independent variables of this study were four types of visual
merchandising: window display, in-store form/mannequin display, floor
merchandising, and promotional signage. It was hypothesized that these
variables influence shoppers to buy on impulse. In other words, these four
types of visual merchandising will influence consumer’s impulse buying
behavior. Each independent variable was comprised of at least three questions
designed to measure each variable. Responses were recorded using five-point
scale with choice options of never=1 to frequently=5.




3.3 Methodology:

      Sample


      Consumers’ overspending has grown as they have more purchasing
power than before with relatively easy access to credit cards. In fact, they have
grown up with debt and use it freely. Therefore, the consumer behavior of an
important sector of the young adult consumer group, is worth researching.

      Survey Development


      The instrument used for this study was in survey format (Appendix 1).
Questions were adopted from previous research or were created by the
researcher with the help of the researcher’s thesis committee. External factors
examined were forms of visual merchandising likely to be encountered in
many retailing contexts. The research, therefore, focused on the effects of both
in-store information and window display on consumers’ impulse buying
                                       26
behavior.

      The questionnaire consisted of six major sections            measuring
consumers’ impulse buying tendency, influence of visual merchandising and
demographics. The first section of the survey measured consumers’ impulse
buying tendency. Sections two through the section five included questions
measuring four distinctive visual merchandising practices that were expected
to influence cents’ buying tendency. These were window display, in-store
form/mannequin display, floor merchandising, and promotional signage.
Finally, the last section consisted of questions to determine the respondents’
demographic profile, such as age, gender, disposable income, residential
status, school status, major, and job status.




                                       27
Participants were asked to circle the number that best described their
response. Some demographic items were measured using open-ended answer
formats (Appendix 1 section 6). All instructions and consent information were
included in the questionnaire.


      Questions in the first section concerned consumers’ impulse buying
tendency in respect to this criteria (Appendix 1 section 1). Today more
retailers are placing increased importance on window display to attract
passerby’s attention and ultimately to transform shoppers into consumers.

      The second section included questions concerning consumers’ buying
behavior influenced by window display to see if window display influenced
respondents to enter a certain store or to make a purchase decision (Appendix
1 section 2).

      Form/mannequin display provides customers information about new
products, new and current trend, and coordination tips (Appendix 1 section3).

       The third section included questions concerning consumers’ buying
behavior influenced by in-store form/mannequin display to find out if the
respondent was influenced by in-store form/mannequin display when he/she
made a purchase decision (Appendix 1 section 3).



Many retailers make a floor merchandising plan-o-gram/zone-o-gram and
strategically place focused merchandise near the isle so that it can grab the
customer's attention when they pass by. Therefore, the fourth section included
questions concerning consumers’ buying behavior influenced by floor
merchandising (i.e., merchandise itself hanging on the hangers/racks or
folded on tables)


                                      28
To find out if the respondent was influenced by floor merchandising when
he/she made a purchase decision (Appendix 1, section 4). The fifth section
included questions concerning consumers’ buying behavior influenced by
promotional signage (i.e., clearance, reduced price, semi-annual sale, holiday
sales.) to find out if the respondent was influenced by any kind of signs in
store when he/she made a purchase decision (Appendix 1,
section 5).

      The final section included demographic questions related to age,
gender, income, residential status, school status, and job status, to see the
respondents’ demographic profile (Appendix 1, section 6). Because of the
nature of impulse buying, a strong relationship between emotional/affective
reactions and behavior was expected despite of the possible fact that it might
have been more likely influenced by external factors. Thus, respondents were
asked to base their answers on their recent impulse purchase experiences.




                                     29
3.4 Survey Administration/Data Collection:

Data Analysis Methods
Statistical Packages for Social Sciences’ (SPSS) software is used for the data

analysis. The plan for analysis is as follows.

First, descriptive statistics and frequency tables will be generated by SPSS for

a data entry error check and demographic analysis. Then, principal component

analysis with reliability test will be conducted. The Pearson correlation test will

be conducted to see the correlations between consumers’ impulse buying

tendency and each of four types of visual merchandising practices. Finally,

regression analysis will be conducted for hypotheses testing to find out the

relationship between consumers’ impulse buying tendency (dependent

variable) and the four types of visual merchandising (independent variables).

Table 2 shows the hypotheses and survey location along with the planned

analysis for each hypothesis.




                                        30
3.5 Limitations:

 The following limitations were considered in this study:


 1. The sample was geographically limited and the age range was narrow.
    Data collected in other areas may produce different results.
 2. Participants were limited. The shopping traits of the people depends on
    visual merchandising as an information aid may differ depending on
    their area of study.
 3. The instrument was limited to a quantitative method. The survey asked
    participants to answer the questions based on their recent impulse
    buying experiences as long as they were aware of their behavior and
    influences. However, the qualitative research methods may bring
    different results.


 4. Participants had time constraints. Since the survey was asked to be
    completed and to be returned immediately, the time pressure of the
    respondents may have affected the quality of the data.




                                   31
Table 1: Empirical Support for the Questionnaire



                   Questionnaire                            Response
                                                            YES/NO
      Section 1: Impulse Buying
1.    I go shopping to change my mood.
2.    I feel a sense of excitement when I make an
      impulse purchase
3.    After I make an impulse purchase I feel regret
4.    I have difficulty controlling my urge to buy when I
      see a good offer.
5.    When I see a good deal, I tend to buy more than
      that i tend to buy.
      Section 2: Influence of Window Display
6.    I tend to enter the store when I am attracted by an
      eye-catching.
7.    I feel compelled to enter the store when I see an
      interesting window display
8.    I tend to chose which store to shop in depending
      on eye-catching window displays.
      section 3: Influence on In-store/Mannequin
      Display
9.    I get an idea of what I want to buy after looking
      through in-store.
10.   When I see clothing features a new design or style
      on display, I tend to buy it.
11.   When I see clothing that I like on in-store
      form/mannequin display, I tend to buy it.

                                      32
12.   I tend to rely on store displays when I make a
      decision to purchase clothing.
      Section 4: Influence of Floor Merchandising
13.   When I see clothing that catches my eye I tend try
      it with looking through the whole section.
14.   When I walk along the isle, I tend to look through
      the clothing close to me.
15.   I tend to try on clothing that catches my eye when
      I pass by.
      Section5: Influence of Promotional Signage
16.   If I see an interesting promotional offer (reduced
      price, sales promotion etc.) on in-store signs, I
      tend to buy.
17.   Sale/clearance signs entice me to look through the
      clothing.
18.   When I see a special promotion sign, I go to look
      at that clothing.
19.   I am more likely to make an unintended purchase
      if the clothing has a sale or clearance sign.




                                        33
Table 2: Research hypotheses, location of the related
questions, and planned preliminary and hypothesis
statistical tests.


                                                 Planned Statistics
    Hypothesis             Survey             Preliminary           Hyp.
                                                    Tests          Tests
H1. Consumers who         Section 1:        Frequency Table
purchase on impulse are   Ques. 1-5         Principal Component
influenced by window      Section 2:        Analysis              Regression
display.                  Ques. 6-8         Reliability Test      analysis
                                            Person Correlation
H2. Consumers who         Section 1:        Frequency Table
purchase on impulse are   Ques. 1-5         Principal Component   Regression
influenced by in-store    Section 3:        Analysis              analysis
form/mannequin display Ques. 9-12           Reliability Test
                                            Person Correlation
H3. Consumers who         Section 1:        Frequency Table
purchase on impulse are   Ques. 1-5         Principal Component   Regression
influenced by floor       Section 2:        Analysis              analysis
merchandising.            Ques. 13-15       Reliability Test
                                            Person Correlation
H4. Consumers who         Section 1:        Frequency Table
purchase on impulse are   Ques. 1-5         Principal Component   Regression
influenced by floor       Section 2:        Analysis              analysis
merchandising.            Ques. 16-19       Reliability Test
                                            Person Correlation




                                       34
Table 3: Descriptive Statistics for Demographics

                                               Valid
         Question                 Frequency    Frequency(%)
                      Male                30           12.7
Gender                Female            201            84.8
                      18                   6             2.5
                      19                  46           19.4
Age                   20                  73           30.8
                      21                  53           22.4
                      22-25               28            11.8
                      26-55               10             4.1
                      Residence           37           15.6
Residence             Apartment          131           55.3
                      House               66           27.8
                      Alone               10             4.2
Living Arrangement Roommat              205            86.5
                      Parents              6             2.5
                      Spouse               5             2.1
                      Under $49            9             3.6
                      $50-99              23             9.7
                      $100-199            45           18.9
Disposable income     $200-299            45           19.0
                      $300-399            16             6.7
                      $400-499            22             5.0
                      Over $500           17             7.0
                      Freshman            15             6.3
                      Sophomor          109            46.0
School Classification Junior              85           35.9
                      Senior              21             8.9
                      Graduate             5             2.1
                      Unemploy          109            46.0
Job Status            Part-time         108            45.6
                      Full-time           13             5.5




                                   35
CHAPTER 4
                  ANAYSIS AND FINDINGS

      This chapter provides a detailed description of the data analysis and
discussion of research findings as a result of various statistical tests. Data
were collected via self-administered survey. The data file was imported from
Excel to the Statistical Packages for Social Sciences’ (SPSS) software for
analysis. Statistical methods used for the data analysis in this study were
descriptive statistics and frequency tests, principal component analysis and
reliability tests, Pearson correlation tests, and regression analyses. The
significance level chosen for this study was .01.




4.1 Descriptive Findings
      First, a descriptive statistic analysis was conducted to examine
whether or not there was an error in the data entry. In addition, frequency
tables were generated to describe the sample in terms of demographics as
well as respondents’ impulse buying tendency and the influence of four
types of visual merchandising on their buying behaviors. The frequency
tables included frequency, percent, valid percent, and cumulative percent as
well as mean and standard deviation for each data set.




                                       36
4.2 Descriptive Statistics for demographics
Descriptive statistics for the sample can be found in Table 3, providing
information regarding the respondents’ demographical profile, such as age,
gender, disposable income, residential status, school classification, major,
and job status. The majority of respondents were women (65%) whereas only
43% of respondents were men (Table 3). Since women are the major
purchasers of soft goods (e.g., apparel and household textiles), this
demographical limitation is not considered to affect the result in a negative
way. and the average age of respondents was 21-25 years old. The disposable
income of the respondents ranged from Rs.5000 to Rs.10,000.

The largest proportion (2 1%) of the respondents was majoring in Child
Development followed by Fashion Merchandising (15%) and Nursing (13%).
Eighty-two percent of respondents were either sophomores (46%) or juniors
(3 6%). Almost one half (46%) of respondents were unemployed and the
other half had a part-time job (45.6%).
      The mean score (3.32) for the first section of the survey, measuring
consumers’ impulse buying tendency, suggested respondents tended to
purchase on impulse. Section two through section five, measured influences
of four types of visual merchandising on consumers’ shopping behavior. As
long as Customers were aware of the influences on their buying decision
from their recent shopping experience, it appeared that they tended be
influenced by window display, floor merchandising, and promotional signage
when they made a purchase decision (Table 4). However, for the fifth section
of the survey, measuring influence of in-store form/mannequin display on
consumers’ buying behavior, the mean scale exhibited 2.62; in-store
form/mannequin display was not rated as strongly as the in-store visual
merchandising variables. Bivariate correlation among variables and


                                     37
directional relationships between college students’ impulse buying behavior
and the influencing factors will be discussed later in Pearson correlation and
regression analysis section.




4.3 Data Reduction and Reliability Test
Three to five items were constructed to measure each variable under study.
Principal component analyses with Varimax rotation were conducted for five
variables (i.e., consumers’ impulse buying tendency, consumers’ buying
behavior influenced by window display, consumers’ buying behavior
influenced by in-store form/mannequin display, consumers’ buying behavior
influenced by floor merchandising, consumers’ buying behavior influenced
by promotional signage) to impulse buying behavior, influence of floor
merchandising on consumers’ impulse buying behavior, and influence of
promotional signage on consumers’ impulse buying behavior). The
descriptive statistics for each variable is shown in Table 4.




Table 4: Descriptive Statistics for Variables

                                       38
Variables             Number of          Mean         Standard
                              Cases                           Deviation
Impulse Buying Tendency 237                            3.32               0.7944

Influence of Window         237                        3.35               0.9486
Display of
Influence                   237                        2.62               0.7673
Form/Mannequin

Display of Floor
Influence                   237                        3.49               0.7826

Merchandising
Influence of Promotional 237                           3.89               0.7654

Signage


The items in the first section of the survey, measuring consumers’ impulse
buying tendency, initially loaded into two components with Eigen values over
one (Table 5). Four of the five items loaded into the first component, and one
item loaded into the second component. This result suggests that one item
(i.e., “3. After I make an impulse purchase, I feel regret.”) represented a
concept different from that of the other four items.
      For the second section of the survey, measuring the influence of
window display, the principal component analysis resulted in one
component with an Eigen value of 2.32 (Table 8). This component consisted
of three questions. These three questions (see Table 8, question numbers 6-
8) were closely related, representing the same concept: consumers’ buying
behavior influenced by window display.



Table 5: Initial Component Matrix of Multi-item scale for

                                      39
Impulse Buying

      Items (Impulse Buying                Components(1 & 2)
               Tendency)

1. I go shopping to change my mood.        0.689     -0.207

2. I feel a sense of excitement when I      0.722    -0.409
make an impulse purchase

3. After I make an impulse purchase, I      0.104    -0.882
feel regret.

4. I have difficulty controlling my urge    0.798     0.278
to buy when I see good offer.

5. When I see a good deal, I tend to        0.679     0.183
buy more than I intended to buy.




                                      40
Table 6: Component Matrix for Impulse Buying Tendency
after Eliminating Item Three


          Items (Impulse Buying Tendency)                 Component
                                                             (1)

                                                             0.690
   1. I go shopping to change my mood.


                                                             0.734
   2. I feel a sense of excitement when I make an
      impulse purchase.
                                                             0.790
   4. I have difficulty controlling my urge to buy when
      see a good Offer.

                                                             0.679
   5. When I see a good deal, I tend to buy more than
      that I intended to buy.

                 % of Variance Explained                    53%




Table 7: Reliability Test Result for Internal Consistency


                                    41
Survey Questions                       Correlation
Section 1: Impulse Buying                                         0.70
1. I go shopping to change my mood.                               0.66
2. I feel a sense of excitement when I make an                    0.62
  impulse purchase
3. After I make an impulse purchase I feel regret
4. I have difficulty controlling my urge to buy when I see a      0.58
good offer.
5. When I see a good deal, I tend to buy more than                0.66
  that I tend to buy.
Section 2: Influence of Window Display                            0.85
6. I tend to enter the store when I am attracted by               0.75
  an eye-catching.
7. I feel compelled to enter the store when I see an              0.76
  interesting window display
8. I tend to chose which store to shop in depending               0.86
  on eye-catching window displays.
Section 3: Influence on In-store/Mannequin Display                0.83
9. I get an idea of what I want to buy after looking              0.80
  through in-store.
10. When I see clothing features a new design or                  0.76
   style on display, I tend to buy it.
11. When I see clothing that I like on in-store                   0.76
   form/mannequin display, I tend to buy it.
12. I tend to rely on store displays when I make a                0.81
  decision to purchase clothing.
Section 4: Influence of Floor Merchandising                       0.64


                                         42
13. When I see clothing that catches my eye I tend              0.55
   try it with looking through the whole section.
14. When I walk along the isle, I tend to look                  0.55
   through the clothing close to me.
15. I tend to try on clothing that catches my eye               0.53
  when I pass by.
Section5: Influence of Promotional Signage                      0.84
16. If I see an interesting promotional offer                   0.84
   (reduced price, sales promotion etc.) on in-store
   signs, I tend to buy.
17. Sale/clearance signs entice me to look through              0.77
   the clothing.

18. When I see a special promotion sign, I go to                0.78
   look at that clothing.
19. I am more likely to make an unintended                      0.80
   purchase if the clothing has a sale or clearance
  sign.




Table 8: Component Matrix for Influence of Window Display

      Items (Influence of window display)              Component
                                                          (1)

                                       43
6. I tend to enter a store when I am attracted by an eye        0.904

  catching window display

7. I feel compelled to enter the store when I see an            0.808

  interesting window display

8. I tend to choose which store to shop depending on             0.691

  eye-catching window display.

                    % of variance                                77%



In the analysis of the third section of the survey, measuring influence of in-
store form/mannequin display, the result of the principal component
analysis showed that all four items in this section loaded in one component
with an Eigen value of 2.64 accounting for 66% of the variance (Table 9).



This result suggested that these four questions (see Table 9, question
numbers 9-12) were relevant and representing the same concept: consumers’
buying behavior influenced by in-store form/mannequin display.

The result of the principal component analysis for the forth section of the
survey, measuring influence of floor merchandising, all three items loaded in
one component with an Eigen value of 1.76 (Table 10). This result suggests
that all three questions (Table 10, question numbers 13-15) in this section were
closely related and represented the same concept: consumers’ buying

behavior influenced by floor merchandising.

The principal component analysis for the fifth section, measuring influence
of promotional signage, resulted in one component with an Eigen value of


                                      44
2.71 accounting 68% of variance (Table 11). This component consisted of four
questions. These four questions (Table 11, question numbers 16-19) were
closely related representing the same concept: consumers’ buying behavior
influenced by promotional signage.



Table 9: Component Matrix for Influence of
Form/Mannequin Display

                                                             Component
                                                                  (1)
   Items (Influence of Form/Mannequin Display)
                                                                 0.788
   9. I get an idea of what I want to buy after looking
   through in-store form/mannequin displays.

                                                                 0.843
   10. When I see clothing featuring a new style or design
   on display, I tend to buy it.

                                                                 0.844
   11. When I see clothing that I like on in-store
   form/mannequin display, I tend to buy it.

                                                                 0.772
   12. I tend to rely on store displays when I make a
   decision to purchase clothing.

                    % of Variance Explained                      66%



Table 10: Component Matrix for Influence of Floor
Merchandising




                                     45
Component
                                                            (1)
Items (Influence of Floor Merchandising)

13. When I see clothing that catches my eye I tend to       0.767

    try it on without looking through the whole
section.

                                                            0.758
14. When I walk along the isle, I tend to look through
    the clothing close to me.

                                                            0.770
15. I tend to try on clothing that catches my eye
when I     pass by.


      % of Variance Explained                               59%




                                  46
Table 11: Component Matrix for Influence of Promotional
Signage


                                                              Component
                                                                 (1)
    Items (Influence of Promotional Signage)
  16. If I see an interesting promotional offer (reduced         0.748
     price, sales promotion, and etc.) on in-store signs, I
     tend to buy.
                                                                 0.864
  17. Sale/clearance signs entice me to look through the
  clothing.

  18. When I see a special promotion sign, I go to look at       0.85 1

  that clothing.

  19. I am more likely to make an unintended purchase            0.826

  if the clothing has a sale or clearance sign.

          % of Variance Explained                                68%




                                      47
4.3 Analysis and Discussion of Hypotheses
Findings:
Pearson Correlation and Regression Analysis
      Pearson correlation tests were conducted to see the correlations
between the independent variable and dependent variables. In addition to
the Pearson correlation test, a simple bivariate analysis, a multiple
regression analysis was conducted for the hypotheses testing using impulse
buying tendency as a dependent variable and each visual merchandising
variable as predictors in order to see if there is relationships that were
uncovered in a multiple context and to determine the relative importance of
the various type of influences on customers’ impulse buying behavior.

      Hypothesis 1 was designed to test whether or not there was a
significant relationship between consumers’ impulse buying behavior and
window display.

      Hypothesis 2 was constructed to determine whether or not there
was a significant relationship between consumers’ impulse buying behavior
and in-store form/mannequin display.

      Hypothesis 3 was prepared to test whether or not there was a
significant relationship between consumers’ impulse buying behavior and
floor merchandising.

      Hypothesis 4 was designed to determine whether or not there was a
significant relationship between consumers’ impulse buying behavior and
any type of in-store promotional signage.
The regression analysis found that window display did not significantly
influence consumers’ impulse buying behavior (Table 13) even though the
Pearson correlation test showed the significant relationship between
impulses buying and window display (Table 12). Since the p-value (.28 1) from


                                     48
the regression analysis was greater than the level of alpha .01, the null
hypothesis was not rejected. This suggested that there was not a directional
relationship where window display significantly influenced consumers'
impulse buying behavior. The data did not provide sufficient evidence that
there was a significant relationship between consumers’ impulse buying
behavior and window display suggesting that although consumers’ impulse
buying behavior and window display are correlated, the directional
relationship (i.e., influence of window display on impulse buying) was not
found to be statistically significant.

      This result might have come from the fact that window display was
also significantly correlated with other variables including the variables (i.e.,
form/mannequin display and promotional signage) that had the stronger
relationship with impulse buying from the regression analysis; the significant
relationship with impulse buying shown from the a simple bivariate analysis
might have resulted from the significant relationship with these variables.




                                         49
Table 12: Correlation with Impulse Buying

      Variables                            Coefficient (r)       Significance
                                                                       (p)

Window Display                                        0.292**             0.000**

Form/mannequin Display                                0.406**             0.000**

Floor Merchandising                                   0.286**             0.000**
Promotional Signage                                   0.404* *           0.000* *



Table 13: Hypotheses and conclusion with determining
coefficients and p-values from regression analysis

       Hypothesis               Coefficient p-value              Conclusion
                                   (β)
                                                        Although Consumers
H1. Consumers who
                                                        impulse buying behavior
purchase on impulse are           0.069      0.28 1
                                                        and window display are
more likely influenced by
                                                        correlated, the directional
window displays.
                                                        relationship was not
H2. Consumers who                                       In-store form/mannequin
purchase on impulse are             0.287 0.000**       display significantly
more likely influenced by in-                           influences Consumers
store form/mannequin                                    impulse buying behavior.
display.




                                      50
Although Consumers
H3 Consumers who                                      impulse buying behavior
                                   0.072 0.249
purchase on impulse are                               and floor merchandising are
more likely influenced by                             correlated, the directional
floor merchandising.                                  relationship was not found
                                                      to be statistically significant.
H4. Consumers who                                     Promotional signage
purchase on impulse are            0.297 0.000**      significantly influences
more likely influenced by                             Consumers impulse buying
promotional signage.                                  behavior.


Dependent Variable: Consumers’ impulse buying tendency

Predictors: Influence of window display, in-store form/mannequin
display, floor merchandising and promotional signage on consumers’
buying behavior.


Even though the result showed the window display did not significantly
influence Consumers actual impulse buying decision in a direct way, it may
play a role to attract Consumers to enter the store by creating attractiveness
of a store, which may ultimately contribute their impulse buying.




                                     51
CHAPTER 5
       CONCLUSIONS, IMPLICATIONS, AND
                    RECOMMENDATIONS

      This chapter provides summary and discussion of research findings
along with implications for industry. In addition, recommendations for
future research and limitations of the study will be discussed.



5.1 Conclusions:

Impulse buying is a sudden and immediate purchase with no pre-shopping
intentions either to buy the specific product or to fulfill a specific buying
task. Researchers have attempted to determine if consumers’ who frequently
engage in impulse buying behavior have some common personality traits.
This study further investigated some external factors that influence impulse
buying behavior. In attempt to examine this relationship, this study
primarily tried to explain the relationship between consumers’ impulse
buying behavior and various types of visual merchandising. An important
finding of this study was that visual merchandising practices certainly
influence consumers’ impulse buying behavior. The results proved that there
were significant relationships between consumers’ impulse buying behavior
and in-store form/mannequin display and promotional signage. Even
though the window display and floor merchandising did not appear to
significantly lead to consumers’ impulse buying behavior, the results still
suggested that these variables and consumers’ impulse buying behavior are
significantly correlated. It can be agreed that all four types of visual
                                      52
merchandising (i.e., window display, in-store form/mannequin display, floor
merchandising, and promotional signage) are significantly interrelated and
that relationship generates the influences on consumers’ impulse buying
behavior.
      A significant contribution of the present study is its elucidation of the
relationship between impulse buying and visual merchandising, which has
been neglected in academic research. Despite the utilization of visual
merchandising to improve desirability of products and to encourage
consumers’ buying behavior, a dearth of research exists that investigates its
influence on consumer buying behavior. The result of the present study
proves that there is a pivotal relationship between consumers’ impulse
buying behaviors and two type of visual merchandising practices: in-store
form/mannequin display and promotional signage. When consumers are
exposed to these visual stimuli, they more likely make purchase decisions on
impulse. This suggests that these visual merchandising practices, serving as
stimuli that provoke a desire that ultimately motivates a consumer to make
an unplanned purchase decision upon entering the store, significantly
influence consumers’ impulse buying behaviors.
      In-store browsing appears to be positively affected by consumers’
impulse buying tendency, and in turn, has a positive impact on consumers’
positive feelings and impulse buying urges. Despite the importance of this
relationship, visual merchandising, which was relevant of browsing, has
received minimal attention from researchers. This study showed usefulness
of visual merchandising in understanding impulse buying.




                                      53
5.2 Implications:
Impulse buying occurs when a consumer experiences a sudden, often
powerful and persistent urge to buy something immediately, and the
impulse to buy is hedonically complex. The hedonic value of shopping
suggests that it reflects shopping’s potential entertainment and emotional
worth. It has been suggested that browsing, or shopping without specific
intent, may be more important than the actual acquisition of products and
can provide a pleasurable shopping experience. Therefore, in addition to
exposing consumers to stimuli, such as retail settings, browsing tends to
produce positive feelings for many shoppers. These positive feelings,
produced by browsing, play a role as positive affects to encourage
consumers’ impulse buying behavior. Retail setting, such as visual
merchandising, therefore, can influence consumers’ impulse buying by
providing information or reminding needs as well as producing positive
feelings. At the stages of the impulse buying process, retailers can attempt
to provoke consumers’ desire for the products, and the awareness of the
products, which can satisfy the desire, can be achieved by browsing and
being exposed to the stimuli, such as visual merchandising.
The way in which merchandise will eventually be displayed and promoted at
the   store   level   is   an   important   consideration   in   the   strategic
marketing/merchandising plan. The findings of this study provided
information concerning the influence of visual merchandising on
consumers’ impulse buying behavior. The result signified importance of
visual merchandising influences on impulse buying behavior. Since in-store
form/mannequin display and promotional signage significantly influence
consumers’ impulse buying behavior, retailers should continuously
reinforce usage of in-store form/mannequin displays and functions of signs
to create favorable shopping environments to influence consumers’ both in-

                                       54
store responses and future store choice decisions. Although window display
and floor merchandising did not appear to significantly influence
consumers’ impulse buying behavior, significant correlation found between
consumers’ impulse buying behavior and both window display and floor
merchandising. Since a previous study proved that physical attractiveness of
a store had a higher correlation with a choice of a store than did
merchandise quality, general price level, and selection, retailers should put
more efforts creating attractive and eye-catching window display providing
information regarding new products, fashion trends, or coordination tips.
Even though floor merchandising did not appear to significantly influence
impulse buying decision, research found that perceptions of variety are an
important determinant of attitudes and store choice. Therefore, creative
merchandise presentation and variety of assortment can still influence
customers’ satisfaction and perceptions about the store choice. The findings
of this study provided sufficient evidence that retailers can utilize visual
merchandising to increase desirability of products and to help customers
being aware of the products as well as to create favorable attitudes. This
study also provided insights to retailers about types of visual merchandising
that can influence consumers’ impulse buying behaviors.
The positive impulse buying experiences contribute to establishing store
loyalty and customers’ perceived value and satisfaction influence future
buying decisions. Effective visual merchandising practices can influence
consumers’ positive impulse purchase experiences.




                                     55
5.3 Recommendations for Future Research:

      Because    impulse   buying    behavior   was    strongly   related   to
emotional/affective reactions and behavior despite of the possible fact that
it might have been more likely influenced by external factors, the type of
influence/response was somewhat difficult to determine by the survey
questionnaires. If consumers were aware of their responses to various
situations, the influence of different factors/events could have been directly
examined. Therefore, combination of quantitative and qualitative research
methods (e.g., observational or experimental research methods) is
recommended for future research.
      In addition, since impulse buying is phenomenon in a modern
society, expended research with various demographical and geographical
groups as well as influences of visual merchandising in various non-store
formats are recommended.




                                      56
APPENDIX
                         SAMPLE OF SURVE

                QUESTIONNAIRE                                  RESPONSE
Section 1: Impulse Buying
                                                       Never           Frequently
1. I go shopping to change my mood.
                                                        1      2   3     4    5
2. I feel a sense of excitement when I make an
                                                        1      2   3     4    5
  impulse purchase
3. After I make an impulse purchase I feel regret
                                                        1      2   3     4    5
4. I have difficulty controlling my urge to buy when
                                                        1      2   3     4    5
I see a good offer.
5. When I see a good deal, I tend to buy more than
                                                        1      2   3     4    5
  that I tend to buy.
Section 2: Influence of Window Display
                                                        1      2   3     4    5
6. I tend to enter the store when I am attracted by
                                                        1      2   3     4    5
  an eye-catching.
7. I feel compelled to enter the store when I see an
                                                        1      2   3     4    5
  interesting window display
8. I tend to chose which store to shop in depending
                                                        1      2   3     4    5
  on eye-catching window displays.
Section 3: Influence on In-store/Mannequin
                                                        1      2   3     4    5
Display
9. I get an idea of what I want to buy after looking
                                                        1      2   3     4    5
  through in-store.

                                          57
10. When I see clothing features a new design or
                                                       1   2   3   4   5
   style on display, I tend to buy it.
11. When I see clothing that I like on in-store
                                                       1   2   3   4   5
   form/mannequin display, I tend to buy it.
12. I tend to rely on store displays when I make a
                                                       1   2   3   4   5
  decision to purchase clothing.
Section 4: Influence of Floor Merchandising
                                                       1   2   3   4   5
13. When I see clothing that catches my eye I tend
                                                       1   2   3   4   5
    try it with looking through the whole section.
14. When I walk along the isle, I tend to look
                                                       1   2   3   4   5
    through the clothing close to me.
15. I tend to try on clothing that catches my eye
                                                       1   2   3   4   5
  when I pass by.
Section5: Influence of Promotional Signage
                                                       1   2   3   4   5
16. If I see an interesting promotional offer
                                                       1   2   3   4   5
   (reduced price, sales promotion etc.) on in-store
    signs, I tend to buy.
17. Sale/clearance signs entice me to look through
                                                       1   2   3   4   5
   the clothing.
18. When I see a special promotion sign, I go to
                                                       1   2   3   4   5
    look at that clothing.
19. I am more likely to make an unintended
                                                       1   2   3   4   5
   purchase if the clothing has a sale or clearance
  sign.




                                          58
BIBLIOGRAPHY
REFERENCES:
      Kunkel, J.H., & Berry, L.L.. “A behavioral concept of retail images,”
      Journal of Marketing, 32 (4).


      Smith, M.F. & Carsky, M.L. A comparison of involved and uninvolved
      consumers. Journalof Retailing and Consumer Services

      Welles, G. (1986). We're in the habit of impulsive buying, USA Today,
      May 21, 1.


      Weun, S., Jones, M.A. & Beatty, S.E. (1998). The development and
      validation of the impulse buying tendency scale. Psychological Reports,
      82. 1123-1133.

      (Bellenger et al, 1978; Cobb & Hoyer, 1986; Han et al, 1991; Kollat &
      Willet, 1967; Rook & Fisher, 1995; Weinberg & Gottwald, 1982).


WEBSITES:

      http://www.Google.com/

      http://www.ask.com/

      http://www.wikipedia.com/

      http://www.researchandmarkets.com/

      http://business.mapsofindia.com/india-retail-industry/

      http://www.ibef.org/industry/retail.aspx/

      http://www.icmrindia.org/casestudies/catalouge/marketing/


                                         59

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Project on Visual Merchandising

  • 1. A Project Submitted to the Faculty of the Punjab University In Partial Fulfillment for the Bachelor's Degree of Business Administration 2009-10 SUBMITTED TO: SUBMITTED BY: Prof. Renu Sharma Mahesh Gupta ( Lect. In Commerce & B.B.A Final Year Management Deptt.) ROLL.NO.-15107000128 KAMLA LOHTIA SANATAM DHARAM COLLEGE LUDHIANA vi
  • 2. ACKNOWLEDGEMENT I feel immense pleasure to give the credit of my project work not only to one individual as this work is an integrated effort of all those who are concerned with it. A teacher or a guide plays a great role to play in a field of research and discovery. No research can be done without motivation, guidance, and inspiration. I take this opportunity to put my earnest thanks to Mrs. Renu Sharma (Lect. in Commerce & Management Deptt.) who inspired and guided me a lot while making this project. I am thankful to Mr. Rajesh Marwaha (HOD) for superb guidance, valuable inputs and encouraging attitude. Above all, thanks to almighty GOD for showing his blessing for the accomplishment of the project. MAHESH GUPTA vii
  • 3. TABLE OF CONTENTS Page ACKNOWLEDGEMENT................................................................................. Chapters: 1. INTRODUCTION ............................................................................ 1 Purpose/Objectives .......................................................................2 Rationale/Significance..................................................................3 Conceptual Definitions................................................................4-7 Conceptual Framework ............................................................8-13 Impulsive Buying ........................................................................ 14 Characteristics of Impulse Buying Behavior............................... 15 Normative Evaluations for Impulse Buying ............................... 16 Factors/Cues influencing Impulse Buying .............................17-18 Visual Merchandising .................................................................. 19 Visual Merchandising in Relation to Impulse Buying Behavior.20 2. REVIEW OF LITERATURE ........................................................22 3. METHODS AND PROCEDURES ..............................................23 Research Hypotheses.............................................................23-24 Operational Definitions of Variables .......................................... 25 Methodology ..........................................................................26-29 Limitations ................................................................................... 30 vii
  • 4. 4. ANALYSIS AND DISCUSSION OF FINDINGS ...................... 36 Descriptive Findings .................................................................... 37 Data Reduction and Reliability Test .....................................38-47 Analysis and Discussion of Hypotheses Findings.................48-50 5. CONCLUSIONS, LIMITATIONS, AND RECOMMENDATIONS .................................................................... 51 Conclusions ............................................................................52-53 Implications ................................................................................. 54 Recommendations for Future Research .................................... 56 APPENDICES..........................................................................................57 A SAMPLE OF SURVEY....................................................................57-58 BIBLIOGRAPHY .................................................................................. 59 vii
  • 5. v
  • 6. CHAPTER 1 INTRODUCTION Today’s fierce competition and the similarity of merchandise force each segment of the fashion industry to utilize visual merchandising to improve the desirability of products. Apparel retailers, especially, place more importance on visual merchandising to differentiate their offerings from others’. Researchers found that impulse buyers usually do not set out with the specific purpose of visiting a certain store and purchasing a certain item; the behavior occurs after experiencing an urge to buy, and such behaviors are influenced by internal states and environmental/external factors. Research findings suggest that impulse buying accounts for substantial sales across a broad range of product categories. Since impulse buying is a pervasive aspect of consumers’ behaviors and a focal point for strategic marketing plans, it is worthwhile for retailers to understand factors within the retail setting that trigger consumers’ impulsive reactions. Retailers can help customers to find the right products through focused merchandising, intelligent store design and layout, and other visual merchandising practices, such as product displays, packaging, and signage. 1
  • 7. 1.1 Purpose/Objectives: Young consumer group have gained significant importance from marketers as they have growing purchasing power; their money attitude also has been changing with relatively easy access to credit cards. Therefore, the consumer behavior of an important sector of the young consumer group, college students, is worth to be researched. Retailers try to find variables that influence shoppers’ impulse buying urges and decisions and attempt to control these influencing variables through strategic marketing and merchandising activity. Based on the literature review, it is reasonable to expect that visual merchandising, a common external factor that encourages consumers’ urge to buy, can affect consumers’ impulse buying decisions. The purpose of this research is to examine the relationship between college students’ apparel impulse buying behaviors and common external factors that trigger impulse buying. External factors that the research will exam are attributes likely to be encountered in many retailing contexts, such as visual merchandising. The research, therefore, will focus on effects of four types of visual merchandising on impulse buying behavior. The types of visual merchandising used as predictors in this study are window display, in-store form/mannequin display, floor merchandising and promotional signage. 2
  • 8. 1.2 Rationale/significance of the study: With increasing competition, retailers strive to ensure that their stores are appealing to their target markets. As retailers are finding it increasingly difficult to create a differential advantage on the basis of merchandise alone, the store itself plays an important role for market differentiation. The correlation between consumers’ belief about the physical attractiveness of a store and patronage intentions suggests that the visual aspect of the store may be significant in relation to the consumers’ choice of a store and buying behavior. Since many retailers use visual presentation of the store/company’s offering in order to encourage customers’ buying behaviors, this fact was expected to be found in the consumer and marketing literature. However, the literature does not include a coherent approach or provide significant coverage for this subject. If first impressions and appearance are important indicators of store image, then store window displays must play an important role in a consumer’s decision whether or not to enter the store. However, classifications of store image components in the literature are almost entirely related to the in-store merchandise placement. Display communications, which frequently happen to influence consumers’ buying behavior, are not considered. Buttle (1988) referred to visual merchandising as a neglected area in fashion marketing research. This neglect does not signify that this area is unworthy of academic research, but may indicate that since visual merchandising concerns perceptions of creativity, an area which is difficult to test; researchers may have difficulty in analyzing it meaningfully. Therefore, this study will provide information as to why visual merchandising should be considered an important component of a strategic marketing plan in support of sales increase and positive store/company 3
  • 9. image. This study will also provide insights to retailers about types of visual merchandising that can influence consumers’ impulse buying behaviors. The way in which merchandise will eventually be displayed and promoted at the store level is an important consideration in the buying function as well as in the strategic marketing/merchandising plan. 1.3 Conceptual Definitions: Conceptual definitions were adopted from the literature or created by the researcher specifically for this study. External cues: In-store and façade level display correlated with situational environment that influences a customer’s buying decision. 4
  • 10. Floor merchandising: The arrangement of merchandise according to plan-o-gram/zone-o-gram, in which merchandise is made available for sale to customers Form/mannequin display: The presentation of merchandise using forms or mannequins in order to provoke customers’ interest and create the desire to buy. In-store display: A creative way of presenting merchandise with the purpose of providing consumers with information about new products, fashion trends, or coordination tips in order to encourage customers’ urge to buy. For the purpose of this study, the following types of in-store display were investigated: form/mannequin display, floor merchandising, and promotional signage. 5
  • 11. Internal cues: Emotional feelings and desires that influence customers’ buying decisions. Impulse buying: “Impulse buying is a sudden and immediate purchase with no pre-shopping intentions either to buy the specific product category or to fulfill a specific buying task. Signage: Wording used either alone or in conjunction with in- store display to convey product or promotional information to customers with the purpose of informing and creating demand for the merchandise. 6
  • 12. Visual merchandising: A way of presenting merchandise effectively to improve the desirability of a product and to influence a customer’s buying behavior. Window display: Any kind of visual presentation of merchandise in the façade level in order to attract attention and ultimately to enter the store. 7
  • 13. 1.4 Conceptual Framework: Impulse buying has been defined as a spontaneous, immediate purchase without pre-shopping intentions either to buy a specific product category or to fulfill a specific buying task. The impulse buying behavior occurs after experiencing an urge to buy and tends to be spontaneous without a lot of reflection. Since impulse buyers are not actively looking for a certain product and don’t have prior plans or intention to make a purchase, internal states and environmental/external factors can serve as cues to trigger their impulse behavior. 8
  • 14. Model Following is the model of the consumer buying process (Figure 1) including five steps: 1. Need recognition, 2. Information search, 3. Alternative evaluation, 4. Purchase decision, and 5. Post-purchase evaluation. The buying process begins with a recognized need. This need recognition may come from an internal feeling or it may come from external stimuli generating motivation to purchase. When consumers are motivated by identifying needs, they start looking for information. Based on the information, consumers evaluate ways to fulfill the need. After evaluating options, consumers may make a purchase. Finally, consumers formally or informally evaluate the outcome of the purchase after buying a product. This step involves consequences and satisfaction for the purchase; a consumer who has positive experience may develop loyalty to the store where she/he purchased. The process is repeated as consumers feel needs for products. 9
  • 15. Social Marketing Situational Physical Culture Price Surroundings Sub- Social Product culture Surroundings Time, task, Social Class Placement money Momentary Family Promotion Conditions Reference Group Fig 1: A model of consumer buying process This consumer buying process is influenced by social, marketing, and situational Factors. Social influences reflect geographic and sociologic factors. Those can be culture, subculture, social class, and family that influence person’s behavior by providing direct and indirect messages and feedback. Consumers are also influenced by their reference groups, the groups that influence the consumers’ thoughts, feelings, and actions. Marketing influences on the consumer buying process include the affect of the marketing mix, known as product, price, placement, and promotion, which influence the consumer buying process at various stages. 10
  • 16. Consumers, in general, are influenced by characteristics of the situation, circumstances surrounding their shopping trip. Major situational influences include the physical surroundings, social surroundings, time, task, monetary conditions, and momentary moods. The physical surroundings that influence buying behavior are observable features that include location of the store, merchandise display, store interior/exterior design, and noise level of the store. The social surroundings of a situation are other people, their characteristics and roles, and the way they interact. The moods and condition as well as the time, task, and monetary condition of a consumer at the time of purchase influence their buying decision. Although useful in explaining planned purchase situations, the model does not lend itself to explaining the process of impulse buying. The buying behavior is classified as planned or unplanned. According to this classification, planned buying behavior involves a time-consuming; where as unplanned buying refers to all purchases made without such advanced planning including impulse buying, which is distinguished by the relatively speedy decision-making encouraged by stimuli. Impulse purchases are not the result of a specific search to satisfy a particular requirement since the satisfaction may come from the act of shopping itself. Purchases are incidental to this speedy process although they may provide some kind of enjoyment. Therefore, several pre-purchase steps are entirely skipped in the impulse buying process. Considering the nature of impulse buying, which occurs in a short period of time without prior plans, has been modified for the purpose of this study to describe the impulse buying process by omitting several steps, such as need recognition, information search, and alternative evaluation, and reclassifying influencing factors (Figure 2). 11
  • 17. External Internal factors/cues: Factors/Cues: Window Mood/Need/ Display/ Desire/ In-store Form Hedonic Pleasure/ Display/ Floor Cognitive/ Merchandising/ Affective Promotional Evaluation Signage Figure 2: A model of impulse buying process Unlike the planned buying process, the impulse buying process starts with product awareness. Impulse buyers begin browsing without having an intention to purchase a certain item or visiting a certain store. As consumers browse, they are exposed to the stimuli, which triggers customers’ urge to buy on impulse. When impulse buyers feel the desire to buy, they make a purchase decision without searching for information or evaluating alternatives. 12
  • 18. At this stage of the impulse buying process, consumers feel an irresistible urge to buy regardless of their prior intention. Then, consumers may experience positive or negative consequences by the post-purchase evaluation after the purchase on impulse. In fact some consumers have reported dissatisfaction with a product, but maintain satisfaction that the purchase was made. In this process, consumers are influenced by internal states and external factors that trigger their impulse purchase behavior. Since impulse buyers do not set out with a specific goal to buy a certain product or visit a certain store, while browsing and being exposed to the stimuli, impulse buyers feel the desire for the products by being aware of the products, and this desire can be created by internal statement/mood or/and external stimuli. The awareness of the products, which can satisfy the desire, can be achieved by attractive visual presentation of merchandise that provides information regarding new products, fashion trends, or coordination tips. 13
  • 19. 1.5 Impulsive Buying: “Impulse buying has been considered a pervasive and distinctive phenomenon and has been receiving increasing attention from consumer researchers and theorists. Despite the negative aspects of the impulse buying behavior from past research, defining impulsive behavior as an irrational behavior, resulting from a lack of behavioral control impulse purchases account for substantial sales across a broad range of product categories. A study found that impulse purchases represented between27% and 62% of all department store purchases. Other research findings support this assertion revealing almost 90% of respondents have made grocery purchases on impulse occasionally, and between 30% and 50% of all purchases can be classified by the buyers themselves as impulse purchases. Early studies on impulse buying were more concerned with the definitional issues distinguishing impulse buying from non-impulse buying and attempted to classify the types of impulse buying into one of several sub-categories, rather than to understand impulse buying as a trait of consumer buying behavior. Therefore, this approach generated a theory that ignores the behavioral motivations of impulse buying for a large variety of products and, instead, focuses on a small number of relatively inexpensive products. However, this type of approach did not provide sufficient explanations as to why so many consumers appear to act on their buying impulse so frequently. Therefore, researchers began to re-focus attention on impulse buying behavior and to investigate the behavioral motivations of impulse buying. The pervasiveness of impulse buying, even for relatively expensive products, led researchers to look at impulse buying as an inherent individual trait, rather than a response to inexpensive product offerings. Recently, researchers appear to agree that impulse buying involves a hedonic or 14
  • 20. affective component. Today’s research suggests that impulse buying behavior is much more complex than previously conceptualized; that this behavior stems from the desire to satisfy multiple needs that underlie many types of buying behavior. 1.6 Characteristics of impulse buying behavior: Impulse buying behavior is identified with descriptors such as a spontaneous, intense, exciting, urge to buy with the purchaser often ignoring the consequences. While more recent research in this area discusses impulse buying as a trait rather than as a classification of a purchase decision, researchers agree that consumers vary in their impulse-buying tendency. Without having prior information of a new product or intention to purchase a certain item, a consumer is exposed to stimuli, suggesting that a need can be satisfied through the purchase. There are several different types of internal states and environmental/sensory stimuli that serve as cues for triggering impulse buying. Internal cues include respondents’ positive and negative feeling states. Environmental/sensory cues encompass atmospheric cues in retail settings, marketer-controlled cues, and marketing mix stimuli. 15
  • 21. 1.7 Normative evaluations for impulse buying behavior: Past research shows that planned buying behavior results in accurate decisions, but impulsive behavior results in decision errors, increasing possibilities of negative consequences. These negative evaluations of impulse buying behavior possibly stem from psychological studies of impulsiveness that characterize impulsive behavior as a sign of immaturity resulting in a lack of behavioral control or as an irrational, risky, and wasteful behavior. However, some research on impulse buying behavior indicates that impulse buyers do not consider their impulsive purchases as wrong and report even favorable evaluations of their behaviors. In the study of “Trait and normative aspects of impulsive buying behavior”, a relatively small number of respondents (only 20%) reported feeling bad about their impulse buying, but a large number of respondents (4 1%) reported that they actually felt good about their impulse purchases. One explanation for this phenomenon is that consumers buy products for a variety of non-economic reasons, such as fun, fantasy, and social or emotional pleasure. Some consumers even see shopping as retail therapy, as a way of getting over the stresses of a working day or simply a fun day out supporting the hedonic modification for impulse buying. 16
  • 22. 1.8 Factors/Cues influencing impulse buying: Few recent studies investigated the factors that affect impulse buying. Researchers have suggested that internal states and environmental/external factors can serve as cues to trigger consumers’ impulse behavior to purchase. Research shows that situational factors have practical and theoretical significance in that many decisions are made at the point-of-purchase as a reflection of “low involvement” decision-making strategies. The research on situational influence can be described as examining the relationship among shopper characteristics and the features of retailing or point-of-purchase situations. Shopper characteristics might include involvement, attitude, and ethnicity, while the retailing features could include outlet size, retail format, and store personality. Internal factors: Affect or mood has been identified as a variable that influences impulse purchasing. According to a survey 85% of respondents indicated a positive mood would be more constructive to impulse buying than a negative mood. Respondents stated that, in a positive mood, they had an unconstrained feeling, the desire to reward themselves, and higher energy levels. Thus, the impulse buyers exhibited greater feelings of delight, enthusiasm, and joy. Individual consumers' impulse buying behavior is correlated with their desires to fulfill hedonic needs, such as fun, novelty and surprise. In addition, emotional support needs may also be satisfied by the social interaction inherent in the shopping experience. For instance, research findings indicate that consumers report feeling uplifted or energized after a shopping 17
  • 23. experience supporting the recent concept of impulse buying behavior as a trait motivated by hedonic desire. The hedonic value of shopping reflects potential entertainment and emotional worth of shopping. It has been suggested that shopping without specific intent, may be more significant than acquisition of products and can provide a highly pleasurable shopping experience. Since the goal of the shopping experience is to provide satisfaction of hedonic needs, the products purchased during these excursions appear to be chosen without prior planning and represent an impulse buying event. External factors Specific situations and retail settings influence both in-store responses and future store choice decisions because of the changing and adoptive nature of expectations, preferences, and behavior. For instance, the findings of the study showed that consumers’ beliefs about the physical attractiveness of a store had a higher correlation with a choice of a store than did merchandise quality, general price level, and selection. This supports the notion that consumers’ choice of a store is influenced by the store environment, of which visual merchandising plays a vital role. This observation that people approach, avoid, and create situations in accordance with their desires. Customers’ avoid or leave retail settings that are stressful or obstructive. The expectation/experience of positive feelings generally leads to approach responses, while avoidance is associated with expectations/experience of negative outcomes. Researchers have suggested that various aspects of retailing environments can influence consumer behavior. The significant role of various retailing atmospherics, For instance, music and color have been related to consumer behavior, suggesting visual merchandising within the retail settings may influence consumer behavior as well. 18
  • 24. 1.9 Visual Merchandising: Visual merchandising, or visual presentation, is the means to communicate a store/company’s fashion value and quality image to prospective customers. “The purpose of visual merchandising is to educate the customer, to enhance the store/company’s image, and to encourage multiple sales by showing apparel together with accessories”. Therefore, each store/company tries to build and enhance its image and concept through visual presentations, which appeal to shoppers and ultimately transform them into customers by building brand loyalty and encouraging customers’ buying behaviors. Visual merchandising is defined as “the presentation of a store/brand and its merchandise to the customer through the teamwork of the store’s advertising, display, special events, fashion coordination, and merchandising departments 19
  • 25. in order to sell the goods and services offered by the store/company”. Visual merchandising ranges from window/exterior displays to interior displays including form displays and floor/wall merchandising as well as promotion signage. It also broadly includes advertising and brand/store logo. In this study, however, only window display and in-store display comprise of form/mannequin display, floor merchandising and promotional signage were investigated. 1.10 Visual Merchandising in Relation to Impulse Buying Behavior: In-store browsing may be a link between internal and external factors, as an important component in the impulse buying process as well as a link between consumers’ impulse buying behavior and retail settings including exterior and interior display. “In-store browsing is the in-store examination of a retailer’s merchandise for recreational and informational purposes without an immediate intent to buy”. Customers who browsed in a store made more unplanned purchases than non-browsers in a regional mall setting. As a customer browses longer, she/he will tend to encounter more stimuli, which would tend to increase the like hood of experiencing impulse urges. This supports conceptualization of impulse buying as a response to the consumer’s exposure to in-store stimuli. Shoppers may actually use a form of in-store planning to finalize their intentions. The store stimuli serves as a type of information aid for those who go to the store without any predetermination of what they need or buy, and once they get into the store, they are reminded or get an idea of what they may need after looking around the store. In other words, consumer’s impulse buying behavior is a response made by being confronted with stimuli that provoke a desire that ultimately motivate a 20
  • 26. consumer to make an unplanned purchase decision upon entering the store. The more the store stimuli, such as visual merchandising, serves as a shopping aid, the more likely the possibility of a desire or need arising and finally creating an impulse purchase. The importance of window display in relation to consumers’ buying behavior has received minimal attention in the literature. However, since a consumer’s choice of a store is influenced by the physical attractiveness of a store, and the first impressions of the store image is normally created at the façade level, it can be suggested that window display may influence, at least to some degree, consumers’ choice of a store when they do not set out with a specific purpose of visiting a certain store and purchasing a certain item. The initial step to getting customers to purchase is getting them in the door. 21
  • 27. Chapter 2. REVIEW OF LITERATURE Impulse buying has been defined as a spontaneous, immediate purchase (Rook & Fisher, 1995) without pre-shopping intentions either to buy a specific product category or to fulfill a specific buying task (Beatty & Ferrell, 1998). Impulse purchases account for substantial sales across a broad range of product categories (Bellenger et al, 1978; Cobb & Hoyer, 1986; Han et al, 1991; Kollat & Willet, 1967; Rook & Fisher, 1995; Weinberg & Gottwald, 1982). Without having prior information of a new product or intention to purchase a certain item, a consumer is exposed to stimuli, suggesting that a need can be satisfied through the purchase. The store stimuli serve as a type of information aid for those who go to the store without any predetermination of what they need or buy. The more the store stimuli, such as visual merchandising, serves as a shopping aid, the more likely the possibility of a desire or need arising and finally creating an impulse purchase 22
  • 28. CHAPTER 3 METHODS AND PROCEDUR Chapter three outlines and describes the methodology involved in this research. This includes the research hypotheses, operational definitions of variables, instrument development, sample recruitment and data collection procedure, data analysis methods, and study limitations and assumptions. 3.1 Research Hypotheses: Research on situational influences can be described by investigating the relationship among various shopper characteristics and the features of retailing or point-of-purchase situations. Shopper characteristics might include involvement, attitude and ethnicity, while retailing features could encompass store size, retail format and store personality. In this study, impulse purchase tendency serving as a shopper characteristic and visual merchandising serving as an external cue are determined to be variables. Therefore, hypotheses were developed to investigate relationships between consumers’ tendency to purchase on impulse and four types of visual merchandising. 23
  • 29. The Four types of Visual Merchandising are: 1. Window display, 2. In-store form/mannequin display, 3. Floor merchandising and 4. Promotional signage. Hypothesis 1 was constructed to find out whether there was a significant relationship between college students’ impulse buying behavior and window display. Hypothesis 2 was designed to find out whether or not there was a significant relationship between college students’ impulse buying behavior and in-store form/mannequin display. Hypothesis 3 was designed to find out whether or not there was a significant relationship between college students’ impulse buying behavior and floor merchandising. Hypothesis 4 was designed to find out whether or not there was a significant relationship between college students’ impulse buying behavior and in-store promotional signage. 24
  • 30. H1. Consumers who purchase on impulse are influenced by window displays. H2. Consumers who purchase on impulse are influenced by in-store form/mannequin display. H3. Consumers who purchase on impulse are influenced by floor merchandising. H4. Consumers who purchase on impulse are influenced by promotional signage. 3.2 Operational Definitions of Variables: Dependent Variable The dependent variable of this study was consumer’s impulse buying tendency. Five questions measuring consumers’ impulse buying tendency were included in the survey (Table 1, question numbers 1-5; Appendix. 1). These questions were developed through references to previous studies on impulse buying. Responses were measured using a five-point Likert scale, which ranged from never=1 to frequently=5. 25
  • 31. Independent Variables Independent variables of this study were four types of visual merchandising: window display, in-store form/mannequin display, floor merchandising, and promotional signage. It was hypothesized that these variables influence shoppers to buy on impulse. In other words, these four types of visual merchandising will influence consumer’s impulse buying behavior. Each independent variable was comprised of at least three questions designed to measure each variable. Responses were recorded using five-point scale with choice options of never=1 to frequently=5. 3.3 Methodology: Sample Consumers’ overspending has grown as they have more purchasing power than before with relatively easy access to credit cards. In fact, they have grown up with debt and use it freely. Therefore, the consumer behavior of an important sector of the young adult consumer group, is worth researching. Survey Development The instrument used for this study was in survey format (Appendix 1). Questions were adopted from previous research or were created by the researcher with the help of the researcher’s thesis committee. External factors examined were forms of visual merchandising likely to be encountered in many retailing contexts. The research, therefore, focused on the effects of both in-store information and window display on consumers’ impulse buying 26
  • 32. behavior. The questionnaire consisted of six major sections measuring consumers’ impulse buying tendency, influence of visual merchandising and demographics. The first section of the survey measured consumers’ impulse buying tendency. Sections two through the section five included questions measuring four distinctive visual merchandising practices that were expected to influence cents’ buying tendency. These were window display, in-store form/mannequin display, floor merchandising, and promotional signage. Finally, the last section consisted of questions to determine the respondents’ demographic profile, such as age, gender, disposable income, residential status, school status, major, and job status. 27
  • 33. Participants were asked to circle the number that best described their response. Some demographic items were measured using open-ended answer formats (Appendix 1 section 6). All instructions and consent information were included in the questionnaire. Questions in the first section concerned consumers’ impulse buying tendency in respect to this criteria (Appendix 1 section 1). Today more retailers are placing increased importance on window display to attract passerby’s attention and ultimately to transform shoppers into consumers. The second section included questions concerning consumers’ buying behavior influenced by window display to see if window display influenced respondents to enter a certain store or to make a purchase decision (Appendix 1 section 2). Form/mannequin display provides customers information about new products, new and current trend, and coordination tips (Appendix 1 section3). The third section included questions concerning consumers’ buying behavior influenced by in-store form/mannequin display to find out if the respondent was influenced by in-store form/mannequin display when he/she made a purchase decision (Appendix 1 section 3). Many retailers make a floor merchandising plan-o-gram/zone-o-gram and strategically place focused merchandise near the isle so that it can grab the customer's attention when they pass by. Therefore, the fourth section included questions concerning consumers’ buying behavior influenced by floor merchandising (i.e., merchandise itself hanging on the hangers/racks or folded on tables) 28
  • 34. To find out if the respondent was influenced by floor merchandising when he/she made a purchase decision (Appendix 1, section 4). The fifth section included questions concerning consumers’ buying behavior influenced by promotional signage (i.e., clearance, reduced price, semi-annual sale, holiday sales.) to find out if the respondent was influenced by any kind of signs in store when he/she made a purchase decision (Appendix 1, section 5). The final section included demographic questions related to age, gender, income, residential status, school status, and job status, to see the respondents’ demographic profile (Appendix 1, section 6). Because of the nature of impulse buying, a strong relationship between emotional/affective reactions and behavior was expected despite of the possible fact that it might have been more likely influenced by external factors. Thus, respondents were asked to base their answers on their recent impulse purchase experiences. 29
  • 35. 3.4 Survey Administration/Data Collection: Data Analysis Methods Statistical Packages for Social Sciences’ (SPSS) software is used for the data analysis. The plan for analysis is as follows. First, descriptive statistics and frequency tables will be generated by SPSS for a data entry error check and demographic analysis. Then, principal component analysis with reliability test will be conducted. The Pearson correlation test will be conducted to see the correlations between consumers’ impulse buying tendency and each of four types of visual merchandising practices. Finally, regression analysis will be conducted for hypotheses testing to find out the relationship between consumers’ impulse buying tendency (dependent variable) and the four types of visual merchandising (independent variables). Table 2 shows the hypotheses and survey location along with the planned analysis for each hypothesis. 30
  • 36. 3.5 Limitations: The following limitations were considered in this study: 1. The sample was geographically limited and the age range was narrow. Data collected in other areas may produce different results. 2. Participants were limited. The shopping traits of the people depends on visual merchandising as an information aid may differ depending on their area of study. 3. The instrument was limited to a quantitative method. The survey asked participants to answer the questions based on their recent impulse buying experiences as long as they were aware of their behavior and influences. However, the qualitative research methods may bring different results. 4. Participants had time constraints. Since the survey was asked to be completed and to be returned immediately, the time pressure of the respondents may have affected the quality of the data. 31
  • 37. Table 1: Empirical Support for the Questionnaire Questionnaire Response YES/NO Section 1: Impulse Buying 1. I go shopping to change my mood. 2. I feel a sense of excitement when I make an impulse purchase 3. After I make an impulse purchase I feel regret 4. I have difficulty controlling my urge to buy when I see a good offer. 5. When I see a good deal, I tend to buy more than that i tend to buy. Section 2: Influence of Window Display 6. I tend to enter the store when I am attracted by an eye-catching. 7. I feel compelled to enter the store when I see an interesting window display 8. I tend to chose which store to shop in depending on eye-catching window displays. section 3: Influence on In-store/Mannequin Display 9. I get an idea of what I want to buy after looking through in-store. 10. When I see clothing features a new design or style on display, I tend to buy it. 11. When I see clothing that I like on in-store form/mannequin display, I tend to buy it. 32
  • 38. 12. I tend to rely on store displays when I make a decision to purchase clothing. Section 4: Influence of Floor Merchandising 13. When I see clothing that catches my eye I tend try it with looking through the whole section. 14. When I walk along the isle, I tend to look through the clothing close to me. 15. I tend to try on clothing that catches my eye when I pass by. Section5: Influence of Promotional Signage 16. If I see an interesting promotional offer (reduced price, sales promotion etc.) on in-store signs, I tend to buy. 17. Sale/clearance signs entice me to look through the clothing. 18. When I see a special promotion sign, I go to look at that clothing. 19. I am more likely to make an unintended purchase if the clothing has a sale or clearance sign. 33
  • 39. Table 2: Research hypotheses, location of the related questions, and planned preliminary and hypothesis statistical tests. Planned Statistics Hypothesis Survey Preliminary Hyp. Tests Tests H1. Consumers who Section 1: Frequency Table purchase on impulse are Ques. 1-5 Principal Component influenced by window Section 2: Analysis Regression display. Ques. 6-8 Reliability Test analysis Person Correlation H2. Consumers who Section 1: Frequency Table purchase on impulse are Ques. 1-5 Principal Component Regression influenced by in-store Section 3: Analysis analysis form/mannequin display Ques. 9-12 Reliability Test Person Correlation H3. Consumers who Section 1: Frequency Table purchase on impulse are Ques. 1-5 Principal Component Regression influenced by floor Section 2: Analysis analysis merchandising. Ques. 13-15 Reliability Test Person Correlation H4. Consumers who Section 1: Frequency Table purchase on impulse are Ques. 1-5 Principal Component Regression influenced by floor Section 2: Analysis analysis merchandising. Ques. 16-19 Reliability Test Person Correlation 34
  • 40. Table 3: Descriptive Statistics for Demographics Valid Question Frequency Frequency(%) Male 30 12.7 Gender Female 201 84.8 18 6 2.5 19 46 19.4 Age 20 73 30.8 21 53 22.4 22-25 28 11.8 26-55 10 4.1 Residence 37 15.6 Residence Apartment 131 55.3 House 66 27.8 Alone 10 4.2 Living Arrangement Roommat 205 86.5 Parents 6 2.5 Spouse 5 2.1 Under $49 9 3.6 $50-99 23 9.7 $100-199 45 18.9 Disposable income $200-299 45 19.0 $300-399 16 6.7 $400-499 22 5.0 Over $500 17 7.0 Freshman 15 6.3 Sophomor 109 46.0 School Classification Junior 85 35.9 Senior 21 8.9 Graduate 5 2.1 Unemploy 109 46.0 Job Status Part-time 108 45.6 Full-time 13 5.5 35
  • 41. CHAPTER 4 ANAYSIS AND FINDINGS This chapter provides a detailed description of the data analysis and discussion of research findings as a result of various statistical tests. Data were collected via self-administered survey. The data file was imported from Excel to the Statistical Packages for Social Sciences’ (SPSS) software for analysis. Statistical methods used for the data analysis in this study were descriptive statistics and frequency tests, principal component analysis and reliability tests, Pearson correlation tests, and regression analyses. The significance level chosen for this study was .01. 4.1 Descriptive Findings First, a descriptive statistic analysis was conducted to examine whether or not there was an error in the data entry. In addition, frequency tables were generated to describe the sample in terms of demographics as well as respondents’ impulse buying tendency and the influence of four types of visual merchandising on their buying behaviors. The frequency tables included frequency, percent, valid percent, and cumulative percent as well as mean and standard deviation for each data set. 36
  • 42. 4.2 Descriptive Statistics for demographics Descriptive statistics for the sample can be found in Table 3, providing information regarding the respondents’ demographical profile, such as age, gender, disposable income, residential status, school classification, major, and job status. The majority of respondents were women (65%) whereas only 43% of respondents were men (Table 3). Since women are the major purchasers of soft goods (e.g., apparel and household textiles), this demographical limitation is not considered to affect the result in a negative way. and the average age of respondents was 21-25 years old. The disposable income of the respondents ranged from Rs.5000 to Rs.10,000. The largest proportion (2 1%) of the respondents was majoring in Child Development followed by Fashion Merchandising (15%) and Nursing (13%). Eighty-two percent of respondents were either sophomores (46%) or juniors (3 6%). Almost one half (46%) of respondents were unemployed and the other half had a part-time job (45.6%). The mean score (3.32) for the first section of the survey, measuring consumers’ impulse buying tendency, suggested respondents tended to purchase on impulse. Section two through section five, measured influences of four types of visual merchandising on consumers’ shopping behavior. As long as Customers were aware of the influences on their buying decision from their recent shopping experience, it appeared that they tended be influenced by window display, floor merchandising, and promotional signage when they made a purchase decision (Table 4). However, for the fifth section of the survey, measuring influence of in-store form/mannequin display on consumers’ buying behavior, the mean scale exhibited 2.62; in-store form/mannequin display was not rated as strongly as the in-store visual merchandising variables. Bivariate correlation among variables and 37
  • 43. directional relationships between college students’ impulse buying behavior and the influencing factors will be discussed later in Pearson correlation and regression analysis section. 4.3 Data Reduction and Reliability Test Three to five items were constructed to measure each variable under study. Principal component analyses with Varimax rotation were conducted for five variables (i.e., consumers’ impulse buying tendency, consumers’ buying behavior influenced by window display, consumers’ buying behavior influenced by in-store form/mannequin display, consumers’ buying behavior influenced by floor merchandising, consumers’ buying behavior influenced by promotional signage) to impulse buying behavior, influence of floor merchandising on consumers’ impulse buying behavior, and influence of promotional signage on consumers’ impulse buying behavior). The descriptive statistics for each variable is shown in Table 4. Table 4: Descriptive Statistics for Variables 38
  • 44. Variables Number of Mean Standard Cases Deviation Impulse Buying Tendency 237 3.32 0.7944 Influence of Window 237 3.35 0.9486 Display of Influence 237 2.62 0.7673 Form/Mannequin Display of Floor Influence 237 3.49 0.7826 Merchandising Influence of Promotional 237 3.89 0.7654 Signage The items in the first section of the survey, measuring consumers’ impulse buying tendency, initially loaded into two components with Eigen values over one (Table 5). Four of the five items loaded into the first component, and one item loaded into the second component. This result suggests that one item (i.e., “3. After I make an impulse purchase, I feel regret.”) represented a concept different from that of the other four items. For the second section of the survey, measuring the influence of window display, the principal component analysis resulted in one component with an Eigen value of 2.32 (Table 8). This component consisted of three questions. These three questions (see Table 8, question numbers 6- 8) were closely related, representing the same concept: consumers’ buying behavior influenced by window display. Table 5: Initial Component Matrix of Multi-item scale for 39
  • 45. Impulse Buying Items (Impulse Buying Components(1 & 2) Tendency) 1. I go shopping to change my mood. 0.689 -0.207 2. I feel a sense of excitement when I 0.722 -0.409 make an impulse purchase 3. After I make an impulse purchase, I 0.104 -0.882 feel regret. 4. I have difficulty controlling my urge 0.798 0.278 to buy when I see good offer. 5. When I see a good deal, I tend to 0.679 0.183 buy more than I intended to buy. 40
  • 46. Table 6: Component Matrix for Impulse Buying Tendency after Eliminating Item Three Items (Impulse Buying Tendency) Component (1) 0.690 1. I go shopping to change my mood. 0.734 2. I feel a sense of excitement when I make an impulse purchase. 0.790 4. I have difficulty controlling my urge to buy when see a good Offer. 0.679 5. When I see a good deal, I tend to buy more than that I intended to buy. % of Variance Explained 53% Table 7: Reliability Test Result for Internal Consistency 41
  • 47. Survey Questions Correlation Section 1: Impulse Buying 0.70 1. I go shopping to change my mood. 0.66 2. I feel a sense of excitement when I make an 0.62 impulse purchase 3. After I make an impulse purchase I feel regret 4. I have difficulty controlling my urge to buy when I see a 0.58 good offer. 5. When I see a good deal, I tend to buy more than 0.66 that I tend to buy. Section 2: Influence of Window Display 0.85 6. I tend to enter the store when I am attracted by 0.75 an eye-catching. 7. I feel compelled to enter the store when I see an 0.76 interesting window display 8. I tend to chose which store to shop in depending 0.86 on eye-catching window displays. Section 3: Influence on In-store/Mannequin Display 0.83 9. I get an idea of what I want to buy after looking 0.80 through in-store. 10. When I see clothing features a new design or 0.76 style on display, I tend to buy it. 11. When I see clothing that I like on in-store 0.76 form/mannequin display, I tend to buy it. 12. I tend to rely on store displays when I make a 0.81 decision to purchase clothing. Section 4: Influence of Floor Merchandising 0.64 42
  • 48. 13. When I see clothing that catches my eye I tend 0.55 try it with looking through the whole section. 14. When I walk along the isle, I tend to look 0.55 through the clothing close to me. 15. I tend to try on clothing that catches my eye 0.53 when I pass by. Section5: Influence of Promotional Signage 0.84 16. If I see an interesting promotional offer 0.84 (reduced price, sales promotion etc.) on in-store signs, I tend to buy. 17. Sale/clearance signs entice me to look through 0.77 the clothing. 18. When I see a special promotion sign, I go to 0.78 look at that clothing. 19. I am more likely to make an unintended 0.80 purchase if the clothing has a sale or clearance sign. Table 8: Component Matrix for Influence of Window Display Items (Influence of window display) Component (1) 43
  • 49. 6. I tend to enter a store when I am attracted by an eye 0.904 catching window display 7. I feel compelled to enter the store when I see an 0.808 interesting window display 8. I tend to choose which store to shop depending on 0.691 eye-catching window display. % of variance 77% In the analysis of the third section of the survey, measuring influence of in- store form/mannequin display, the result of the principal component analysis showed that all four items in this section loaded in one component with an Eigen value of 2.64 accounting for 66% of the variance (Table 9). This result suggested that these four questions (see Table 9, question numbers 9-12) were relevant and representing the same concept: consumers’ buying behavior influenced by in-store form/mannequin display. The result of the principal component analysis for the forth section of the survey, measuring influence of floor merchandising, all three items loaded in one component with an Eigen value of 1.76 (Table 10). This result suggests that all three questions (Table 10, question numbers 13-15) in this section were closely related and represented the same concept: consumers’ buying behavior influenced by floor merchandising. The principal component analysis for the fifth section, measuring influence of promotional signage, resulted in one component with an Eigen value of 44
  • 50. 2.71 accounting 68% of variance (Table 11). This component consisted of four questions. These four questions (Table 11, question numbers 16-19) were closely related representing the same concept: consumers’ buying behavior influenced by promotional signage. Table 9: Component Matrix for Influence of Form/Mannequin Display Component (1) Items (Influence of Form/Mannequin Display) 0.788 9. I get an idea of what I want to buy after looking through in-store form/mannequin displays. 0.843 10. When I see clothing featuring a new style or design on display, I tend to buy it. 0.844 11. When I see clothing that I like on in-store form/mannequin display, I tend to buy it. 0.772 12. I tend to rely on store displays when I make a decision to purchase clothing. % of Variance Explained 66% Table 10: Component Matrix for Influence of Floor Merchandising 45
  • 51. Component (1) Items (Influence of Floor Merchandising) 13. When I see clothing that catches my eye I tend to 0.767 try it on without looking through the whole section. 0.758 14. When I walk along the isle, I tend to look through the clothing close to me. 0.770 15. I tend to try on clothing that catches my eye when I pass by. % of Variance Explained 59% 46
  • 52. Table 11: Component Matrix for Influence of Promotional Signage Component (1) Items (Influence of Promotional Signage) 16. If I see an interesting promotional offer (reduced 0.748 price, sales promotion, and etc.) on in-store signs, I tend to buy. 0.864 17. Sale/clearance signs entice me to look through the clothing. 18. When I see a special promotion sign, I go to look at 0.85 1 that clothing. 19. I am more likely to make an unintended purchase 0.826 if the clothing has a sale or clearance sign. % of Variance Explained 68% 47
  • 53. 4.3 Analysis and Discussion of Hypotheses Findings: Pearson Correlation and Regression Analysis Pearson correlation tests were conducted to see the correlations between the independent variable and dependent variables. In addition to the Pearson correlation test, a simple bivariate analysis, a multiple regression analysis was conducted for the hypotheses testing using impulse buying tendency as a dependent variable and each visual merchandising variable as predictors in order to see if there is relationships that were uncovered in a multiple context and to determine the relative importance of the various type of influences on customers’ impulse buying behavior. Hypothesis 1 was designed to test whether or not there was a significant relationship between consumers’ impulse buying behavior and window display. Hypothesis 2 was constructed to determine whether or not there was a significant relationship between consumers’ impulse buying behavior and in-store form/mannequin display. Hypothesis 3 was prepared to test whether or not there was a significant relationship between consumers’ impulse buying behavior and floor merchandising. Hypothesis 4 was designed to determine whether or not there was a significant relationship between consumers’ impulse buying behavior and any type of in-store promotional signage. The regression analysis found that window display did not significantly influence consumers’ impulse buying behavior (Table 13) even though the Pearson correlation test showed the significant relationship between impulses buying and window display (Table 12). Since the p-value (.28 1) from 48
  • 54. the regression analysis was greater than the level of alpha .01, the null hypothesis was not rejected. This suggested that there was not a directional relationship where window display significantly influenced consumers' impulse buying behavior. The data did not provide sufficient evidence that there was a significant relationship between consumers’ impulse buying behavior and window display suggesting that although consumers’ impulse buying behavior and window display are correlated, the directional relationship (i.e., influence of window display on impulse buying) was not found to be statistically significant. This result might have come from the fact that window display was also significantly correlated with other variables including the variables (i.e., form/mannequin display and promotional signage) that had the stronger relationship with impulse buying from the regression analysis; the significant relationship with impulse buying shown from the a simple bivariate analysis might have resulted from the significant relationship with these variables. 49
  • 55. Table 12: Correlation with Impulse Buying Variables Coefficient (r) Significance (p) Window Display 0.292** 0.000** Form/mannequin Display 0.406** 0.000** Floor Merchandising 0.286** 0.000** Promotional Signage 0.404* * 0.000* * Table 13: Hypotheses and conclusion with determining coefficients and p-values from regression analysis Hypothesis Coefficient p-value Conclusion (β) Although Consumers H1. Consumers who impulse buying behavior purchase on impulse are 0.069 0.28 1 and window display are more likely influenced by correlated, the directional window displays. relationship was not H2. Consumers who In-store form/mannequin purchase on impulse are 0.287 0.000** display significantly more likely influenced by in- influences Consumers store form/mannequin impulse buying behavior. display. 50
  • 56. Although Consumers H3 Consumers who impulse buying behavior 0.072 0.249 purchase on impulse are and floor merchandising are more likely influenced by correlated, the directional floor merchandising. relationship was not found to be statistically significant. H4. Consumers who Promotional signage purchase on impulse are 0.297 0.000** significantly influences more likely influenced by Consumers impulse buying promotional signage. behavior. Dependent Variable: Consumers’ impulse buying tendency Predictors: Influence of window display, in-store form/mannequin display, floor merchandising and promotional signage on consumers’ buying behavior. Even though the result showed the window display did not significantly influence Consumers actual impulse buying decision in a direct way, it may play a role to attract Consumers to enter the store by creating attractiveness of a store, which may ultimately contribute their impulse buying. 51
  • 57. CHAPTER 5 CONCLUSIONS, IMPLICATIONS, AND RECOMMENDATIONS This chapter provides summary and discussion of research findings along with implications for industry. In addition, recommendations for future research and limitations of the study will be discussed. 5.1 Conclusions: Impulse buying is a sudden and immediate purchase with no pre-shopping intentions either to buy the specific product or to fulfill a specific buying task. Researchers have attempted to determine if consumers’ who frequently engage in impulse buying behavior have some common personality traits. This study further investigated some external factors that influence impulse buying behavior. In attempt to examine this relationship, this study primarily tried to explain the relationship between consumers’ impulse buying behavior and various types of visual merchandising. An important finding of this study was that visual merchandising practices certainly influence consumers’ impulse buying behavior. The results proved that there were significant relationships between consumers’ impulse buying behavior and in-store form/mannequin display and promotional signage. Even though the window display and floor merchandising did not appear to significantly lead to consumers’ impulse buying behavior, the results still suggested that these variables and consumers’ impulse buying behavior are significantly correlated. It can be agreed that all four types of visual 52
  • 58. merchandising (i.e., window display, in-store form/mannequin display, floor merchandising, and promotional signage) are significantly interrelated and that relationship generates the influences on consumers’ impulse buying behavior. A significant contribution of the present study is its elucidation of the relationship between impulse buying and visual merchandising, which has been neglected in academic research. Despite the utilization of visual merchandising to improve desirability of products and to encourage consumers’ buying behavior, a dearth of research exists that investigates its influence on consumer buying behavior. The result of the present study proves that there is a pivotal relationship between consumers’ impulse buying behaviors and two type of visual merchandising practices: in-store form/mannequin display and promotional signage. When consumers are exposed to these visual stimuli, they more likely make purchase decisions on impulse. This suggests that these visual merchandising practices, serving as stimuli that provoke a desire that ultimately motivates a consumer to make an unplanned purchase decision upon entering the store, significantly influence consumers’ impulse buying behaviors. In-store browsing appears to be positively affected by consumers’ impulse buying tendency, and in turn, has a positive impact on consumers’ positive feelings and impulse buying urges. Despite the importance of this relationship, visual merchandising, which was relevant of browsing, has received minimal attention from researchers. This study showed usefulness of visual merchandising in understanding impulse buying. 53
  • 59. 5.2 Implications: Impulse buying occurs when a consumer experiences a sudden, often powerful and persistent urge to buy something immediately, and the impulse to buy is hedonically complex. The hedonic value of shopping suggests that it reflects shopping’s potential entertainment and emotional worth. It has been suggested that browsing, or shopping without specific intent, may be more important than the actual acquisition of products and can provide a pleasurable shopping experience. Therefore, in addition to exposing consumers to stimuli, such as retail settings, browsing tends to produce positive feelings for many shoppers. These positive feelings, produced by browsing, play a role as positive affects to encourage consumers’ impulse buying behavior. Retail setting, such as visual merchandising, therefore, can influence consumers’ impulse buying by providing information or reminding needs as well as producing positive feelings. At the stages of the impulse buying process, retailers can attempt to provoke consumers’ desire for the products, and the awareness of the products, which can satisfy the desire, can be achieved by browsing and being exposed to the stimuli, such as visual merchandising. The way in which merchandise will eventually be displayed and promoted at the store level is an important consideration in the strategic marketing/merchandising plan. The findings of this study provided information concerning the influence of visual merchandising on consumers’ impulse buying behavior. The result signified importance of visual merchandising influences on impulse buying behavior. Since in-store form/mannequin display and promotional signage significantly influence consumers’ impulse buying behavior, retailers should continuously reinforce usage of in-store form/mannequin displays and functions of signs to create favorable shopping environments to influence consumers’ both in- 54
  • 60. store responses and future store choice decisions. Although window display and floor merchandising did not appear to significantly influence consumers’ impulse buying behavior, significant correlation found between consumers’ impulse buying behavior and both window display and floor merchandising. Since a previous study proved that physical attractiveness of a store had a higher correlation with a choice of a store than did merchandise quality, general price level, and selection, retailers should put more efforts creating attractive and eye-catching window display providing information regarding new products, fashion trends, or coordination tips. Even though floor merchandising did not appear to significantly influence impulse buying decision, research found that perceptions of variety are an important determinant of attitudes and store choice. Therefore, creative merchandise presentation and variety of assortment can still influence customers’ satisfaction and perceptions about the store choice. The findings of this study provided sufficient evidence that retailers can utilize visual merchandising to increase desirability of products and to help customers being aware of the products as well as to create favorable attitudes. This study also provided insights to retailers about types of visual merchandising that can influence consumers’ impulse buying behaviors. The positive impulse buying experiences contribute to establishing store loyalty and customers’ perceived value and satisfaction influence future buying decisions. Effective visual merchandising practices can influence consumers’ positive impulse purchase experiences. 55
  • 61. 5.3 Recommendations for Future Research: Because impulse buying behavior was strongly related to emotional/affective reactions and behavior despite of the possible fact that it might have been more likely influenced by external factors, the type of influence/response was somewhat difficult to determine by the survey questionnaires. If consumers were aware of their responses to various situations, the influence of different factors/events could have been directly examined. Therefore, combination of quantitative and qualitative research methods (e.g., observational or experimental research methods) is recommended for future research. In addition, since impulse buying is phenomenon in a modern society, expended research with various demographical and geographical groups as well as influences of visual merchandising in various non-store formats are recommended. 56
  • 62. APPENDIX SAMPLE OF SURVE QUESTIONNAIRE RESPONSE Section 1: Impulse Buying Never Frequently 1. I go shopping to change my mood. 1 2 3 4 5 2. I feel a sense of excitement when I make an 1 2 3 4 5 impulse purchase 3. After I make an impulse purchase I feel regret 1 2 3 4 5 4. I have difficulty controlling my urge to buy when 1 2 3 4 5 I see a good offer. 5. When I see a good deal, I tend to buy more than 1 2 3 4 5 that I tend to buy. Section 2: Influence of Window Display 1 2 3 4 5 6. I tend to enter the store when I am attracted by 1 2 3 4 5 an eye-catching. 7. I feel compelled to enter the store when I see an 1 2 3 4 5 interesting window display 8. I tend to chose which store to shop in depending 1 2 3 4 5 on eye-catching window displays. Section 3: Influence on In-store/Mannequin 1 2 3 4 5 Display 9. I get an idea of what I want to buy after looking 1 2 3 4 5 through in-store. 57
  • 63. 10. When I see clothing features a new design or 1 2 3 4 5 style on display, I tend to buy it. 11. When I see clothing that I like on in-store 1 2 3 4 5 form/mannequin display, I tend to buy it. 12. I tend to rely on store displays when I make a 1 2 3 4 5 decision to purchase clothing. Section 4: Influence of Floor Merchandising 1 2 3 4 5 13. When I see clothing that catches my eye I tend 1 2 3 4 5 try it with looking through the whole section. 14. When I walk along the isle, I tend to look 1 2 3 4 5 through the clothing close to me. 15. I tend to try on clothing that catches my eye 1 2 3 4 5 when I pass by. Section5: Influence of Promotional Signage 1 2 3 4 5 16. If I see an interesting promotional offer 1 2 3 4 5 (reduced price, sales promotion etc.) on in-store signs, I tend to buy. 17. Sale/clearance signs entice me to look through 1 2 3 4 5 the clothing. 18. When I see a special promotion sign, I go to 1 2 3 4 5 look at that clothing. 19. I am more likely to make an unintended 1 2 3 4 5 purchase if the clothing has a sale or clearance sign. 58
  • 64. BIBLIOGRAPHY REFERENCES: Kunkel, J.H., & Berry, L.L.. “A behavioral concept of retail images,” Journal of Marketing, 32 (4). Smith, M.F. & Carsky, M.L. A comparison of involved and uninvolved consumers. Journalof Retailing and Consumer Services Welles, G. (1986). We're in the habit of impulsive buying, USA Today, May 21, 1. Weun, S., Jones, M.A. & Beatty, S.E. (1998). The development and validation of the impulse buying tendency scale. Psychological Reports, 82. 1123-1133. (Bellenger et al, 1978; Cobb & Hoyer, 1986; Han et al, 1991; Kollat & Willet, 1967; Rook & Fisher, 1995; Weinberg & Gottwald, 1982). WEBSITES: http://www.Google.com/ http://www.ask.com/ http://www.wikipedia.com/ http://www.researchandmarkets.com/ http://business.mapsofindia.com/india-retail-industry/ http://www.ibef.org/industry/retail.aspx/ http://www.icmrindia.org/casestudies/catalouge/marketing/ 59